SOLAR

OUTLOOK
REPORT 2020
MIDDLE EAST SOLAR
INDUSTRY ASSOCIATION

JANUARY
2020
MESIA

OFFICE 201
AL AMERI TOWER
Credit: Ghadir Shaar
BARSHA HEIGHTS
DUBAI, UAE

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Knowledge Partner
 TABLE OF
CONTENTS

Foreword 04

1 Introduction 06

2 Investment in 08
Renewable Energy 

3 Solar Trends 2019 - 2021 11

4 Solar Projects 2019 - 2021 21

5 Energy Storage 25

6 Highlights in MENA’s 32
Leading Solar PV Markets

A. Algeria 32

B. Bahrain 34

C. Egypt 35

D. Jordan 38

E. Kuwait 41

F. Morocco 44

G. Oman 46

H. Pakistan 48

I. Saudi Arabia 51

J. Tunisia 55

K. United Arab Emirates 57

L. Iraq 60

7 Conclusion 61

8 Glossary of Terms 63

Middle East Solar Industry Association 03

 FOREWORD
The Middle East and North Africa saw 2019 again confirm the growth
and importance of solar power in the region’s energy landscape. Leading
countries of the region are steadily commissioning large projects
and launching additional phases of their renewable energy and solar
programs (Morocco, Egypt and the UAE) and other countries of the region
are coming on board. Projects in the pipeline are now tendered in Oman,
Kuwait, Tunisia and countries like Pakistan and Iraq are engaging their
first large utility size projects.
Figures illustrate this trend: According to Frost and Sullivan, the value
of solar projects that are currently operational in the region is estimated
at $ 5 billion to $ 7.5 billion and the total value of projects expected to
come online by 2024 at $15 billion to $ 20 billion. APICORP values the
total investment in renewables in MENA between 2019-2023 at 34% of
the total investment in the power sector (USD 210 billion) which amounts
to an estimated USD 71.4 billion.
Martine Mamlouk Solar energy is spreading beyond utility scale projects
General Secretary of MESIA
Even when large utility size projects may still be limited, demand for rooftop
and decentralized projects for commercial, industry and residential is
picking up. In countries where electricity access, renewable energy is more
and more favored over conventional fuel generators. A decrease of subsidies
is furthering this movement as well as adoption of regulatory frameworks.
Moreover, solar energy for the end user is spreading with integration in
buildings, desalination and district using renewable energy, and clean
transportation are engaging in this transition, opening the door to new
market opportunities for the solar industry.
Increasing competitiveness and innovation
The MESIA 2020 Outlook shows how these trends are spreading throughout
the MENA region, supported by further decline of levelized cost of solar
electricity (LCOE), making grid parity a reality in many places. The continuous
and significant drop of costs of solar panels is one of many factors that have
contributed to reducing CAPEX for both utility scale and distributed solar
projects.
Advances in technology is leading. New solution, including e.g. bifacial
modules, half-cut cells, heterojunction cells and organic thin film as well as
improved robotic cleaning are introduced. New fields are also being explored
such as floating PV. More efficient CSP is tested.
Finally, easing of global financial conditions has continued to play an
important role as access to low cost capital has helped offering of low
solar prices. This may not last. but one can expect that in the long run, solar
industry financing will also be supported by an increase in green financing
solutions, green bonds or sukuk, as well as cryptocurrencies.
SOLAR OUTLOOK REPORT 2020 04
The increasing share of renewable energy and solar in the energy mix raises new challenges
In order to trigger full deployment of solar potentials of the region, more favorable regulatory frameworks and removal
of fossil fuel subsidies remain necessary. Diffusion of rules of local content are challenging companies. Underlining
the need to fully integrate the development of solar capacity in the pursuit of economic diversification, industrialization
and employment of the countries of the region. Clarity of conditions and open dialogue between authorities and the
private sector will be necessary to support further investment in the sector.
The main challenge will be grid stability and flexibility as more renewable energy projects come online. New
interaction between traditional energy providers and consumers will complicate this issue further: Jordan has halted
its program to assess the impact of integration of additional renewable based electricity to the grid Abu Dhabi has
established a new interactive planning tool to better handle this problem.
Solar PV projects plus storage, combination of PV and CSP storage are coming up as highlighted by report and grid
parity is not far. Further R&D into energy storage will help.
New Solutions are at Reach
High level AI opens a wide range of new opportunities: digitalization and artificial intelligence (AI) are on the top of
the agenda to devise improved smart demand response, smart EV charging, more distributed energy and, according
to IEA, should “ reduce curtailment of solar photovoltaics (PV) and wind power from 7% to 1.6% in 2040, avoiding 30
M T of carbon dioxide emissions in 2040”.
They can also foster efficiency of plants, e.g. use of precise data management and software to align a large array of
mirrors extremely accurately to reflect sunlight on to a single target will allow concentrated solar energy to exceed
1,500°C. Thus, this advanced technology, will allow larger application of CSP for industries, green hydrogen or syngas.
Green Hydrogen may be the next major breakthrough for large and long-term storage and to enable full use of
enormous potentials for the region to export clean energy to countries less blessed with solar resources.
Increased engagementin carbon pricing and carbon market
With more and more interest of the industry and consideration by countries like Saudi Arabia (cf. the recent
announcement of His Highness, Prince Abdul-Aziz Bin Salman, Minister of Energy of KSA) these mechanisms may
become in the long run an important game changer that can only benefit the deployment of solar energy.
As the world struggles to implement all the engagement of the Paris treaty, the industry is bringing increasingly
technical, environmentally friendly innovative and viable competitive solutions that will be carried and spread via the
market. The effort requires however pro-active and inventive collaboration between governments, public sector and
private companies. PPP are key for funding in many cases while working on a friendly regulatory framework should
be on the top of the agenda to support that trend.
A special word of thanks to our MESIA members who were instrumental in helping to bring this report to fruition – in
particular to Alex and Mathieu. And last though certainly not least, our MESIA team, Dania, who was essential in this
endeavor, and Micheline for her guidance throughout this process.
Middle East Solar Industry Association 05

1. Introduction
Renewable energy has
been growing significantly
over the past 12 months.
This trend will continue
to increase as solar
power prices reach grid
parity. In 2019, the global
estimated additions of
solar photovoltaic (PV)
reached almost 133 GW
(Figure 1). Within the
Middle East and North
Africa (MENA) region,
the increased industrial
activity and drive towards
renewables is reflected in
each country’s strategy.
Continuous population
growth and economic
development has placed
pressure on existing
power assets and in
some cases, created a
significant gap between
electricity production
and demand. Affordable
renewable energies in the
region – mainly solar –
have become an obvious
solution.
As MENA countries move towards
achieving their respective
renewable energy targets, major
highlights from 2019 include:
• UAE: Noor Energy Solar Park,
in the Emirate of Abu Dhabi, at
Sweihan entered commercial
operation in mid-2019 with 1.17
GW. The US$-871 million project
has more as 3.2 million panels
and provides power for 90,000
people. In addition, a second large
project of 2GW of PV at Al Dhafra
has been tendered in 2019 and a
third project of 2GW is planned by
Abu Dhabi tender in 2020.
SOLAR OUTLOOK REPORT 2020 06
GLOBAL SOLAR PV CAPACITY, 2009 - 2019
700
600
500
Capacity (GW)
400
300
200
100
22.6 39.6
0
2009 2010
*Estimates based on data obtained through multiple sources
Figure 1: Global Solar PV Capacity (Source: IRENA, IEA, PowerWeb, Frost & Sullivan)
• In Dubai, a 900MW PV IPP project
in the Mohammed Bin Rashid
Al Maktoum Solar Park was
awarded at a world record low bid
of $0.0169 per kWh, in October
2019 It will constitute the fifth
phase of the total planned 5GW
of the Park at Al Maktoum Solar
Park.
•
In Egypt, main components of
Benban Park have been completed
with 1.4GW commissioned and a
first contract for 200MW in Kom
Ombo allocated.
• Low tariffs were achieved in
Tunisia’s 200 MW Tatatouine
solar PV project with a price
of $0.0244 per kWh as well as
Egypt’s Kom Ombo 200 MW PV
project at $0.02752 per kWh.
• KSA: The 300MW Sakaka solar PV
plant, the largest of KSA to date,
was brought online in November.
In addition, the Renewable Energy
Project Development Office
(REPDO) invited 60 prequalified
companies to bid for six solar
energy schemes with a combined
capacity of 1.5 GW. Another
six projects are expected to be
tendered in early-2020.
• The tender of Noor Midelt 1 Hybrid
Solar Plant project (800 MW) – in
Morocco broke the world price
record of $0.071 cents per kWh at
peak hour.
• Oman engaged the tendering
process of two additional phases,
of 500 MW solar PV each.
617.9
480.4
386.1
292.4
221.0
172.9
135.7
100.2
70.9
2011 2012 2013 2014 2015 2016 2017 2018 2019*
• In Tunisia, 500MW were allocated,
in December 2019, to three
consortiums respectively for 300
MW, 100 MW and 100 MW, with
lowest bid at $2,5 cents /kWh.
• In Jordan, the government is
studying how the grid could be
able to absorb more renewable
energy projects halting new grid
connection licenses above 1 MW.
• Pakistan is moving ahead with
a more decisive policy and
objectives of 30% of renewables
(excluding hydro) in 2030.
• Iraq has fixed first objectives of
renewable energy of 10% and
interest for distributed renewable
energy is on surge with increasing
recent electricity shortages.
• The region’s C&I market is picking
up as fossil fuel subsidies
decrease in several countries
and regulatory frameworks are
progressively put in place.
• Huge gaps remain between
MENA countries. Egypt, Jordan,
Morocco and the UAE are the main
leaders in solar development and
KSA is about to join them.
As renewable energy increases, grid
capacity and stability challenges
underline the importance of
adequate storage solutions. CSP,
PV and storage solutions are
starting to enter the MENA region
as seen in Morocco and the UAE
supported by declining prices.
 The total corporate funding in the global solar sector saw an 11% increase CSP Investments More cost-effective technologies and project bankability will play an
year-on-year at $109.4 billion in the first half of 2019. More than $2.6 trillion important role to further CSP investment; however, the takeoff may take
has been invested in renewable energy over the past decade. some time. CSP requires more innovation, such as plant configuration,
hybridization parameters and use of artificial intelligence.
Global solar power capacity increased by more than 25 times in this decade,
2. Investment from 25 GW at the beginning of 2010 to 617.9 GW anticipated by the end of
2019. Overall investment in the MENA energy sector could reach $1 trillion
in Renewable between 2019 and 2023, with the power sector accounting for the largest
Grid Interconnectivities The GCC countries’ grid inter-connectivity is expected to generate US$ 33
share of the spending at 36%. billion in investments, economic and energy savings over the next 25 years.
Energy At country level, Jordan’s investment in the Green Corridor project is keen for
As the unit rate for solar energy investment is reducing year-on-year, a the development of its renewable energy capacities.
decrease in capital does not represent a slowdown in the industry (Figure
2). Instead, this indicates the price decline in renewable energy technologies
as the amount of gigawatts installs remain high.
RENEWABLE ENERGY INVESTMENT CHALLENGES

GLOBAL INVESTMENT IN RENEWABLE ENERGY (USD BILLION)

350.0
301.5 308.9
300.0 280.6 272.9
264.8 264.8
Investment (USD Billion)

238.6
250.0
213.2 213.0
200.0
155.3 147.0
150.0 120.5
109.4
89.0
100
61.1
40.6
50.0

0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019*

*H1 estimate; Figures do not include hydropower

Figure 2: Global Investment in Renewable Energy (Source: IRENA, BNEF, Frankfurt School, UNEP and Frost & Sullivan) Noor PV 1 - Morocco
ACWA Power

DEVELOPMENT FINANCE INSTITUTIONS

Investment in commercial- rebates to switch to solar energy, trade schools and universities
Investment from Development first half of 2019 indicate that a given to local banks, and that DFIs scale solar development in the may play an important role in are growing. The industry can
Finance Institutions (DFIs) showed number of large projects had not have launched and continued a MENA region faces a number of some countries. An example of play a major role in supporting
signs of stalling in 2018 compared yet reached financial closure. large number of support projects challenges but also opportunities. this can be seen in the UAE as the development of training and
to 2017. This is mostly due to a Thus, DFIs only financed some to help governments tender or Though challenges vary in each Dubai’s regulatory framework has fostering local talent which will
smaller number of eligible projects smaller projects. It should be develop solar plants. market, the main issues include: helped reduce costs, increased play a key role to increase the
in the region, yet DFI funding noted that DFI’s financing is often project design optimizations and solar industry throughout the
remains substantial. Figures for channeled through credit lines • Grid parity – when renewables provided a bankable procurement region.
are competing with heavily process. At global level, IRENA’s
subsidized fossil fuel generation work on project standardization • Finance – as the region’s
assets. aims to foster such approach. renewable energy market
INVESTMENT PRIORITIES matures, lenders use progressive
• Policy and legislation – most • Awareness – in some markets, financing mechanisms, such
markets require government solar is still a relatively new as soft short-term loans which
Storage Solutions The stationary battery storage market size will surpass $170 billion by support to encourage the concept so educational and can encourage developers to
2030, according to Global Market Insights. Energy storage systems are adoption of solar energy. informational campaigns are refinance after a set time, to lower
also growing in interest across the GCC as they form a crucial component In addition to setting high needed. lending costs.
to enable grid flexibility. In addition to the growing share of intermittent renewable energy targets, stable
sources of energy, industrialization across the emerging economies and tariff regimes, clear permitting • Training – there is a shortage
increasing demand for energy storage systems will stimulate the stationary rules, net metering, wheeling of required skills to meet the
battery storage market growth. and grid connection conditions demand. Partnerships and
are required. Incentives, such as collaboration with high schools,

SOLAR OUTLOOK REPORT 2020 08 Middle East Solar Industry Association 09

 3. Solar Trends
2019 – 2021

3.1 DECREASE IN 300 35

SOLAR PRICES 250

30

25
200

20
Most recently, Dubai’s 900 MW 150
solar tender hit another low-price 15

record with $0.0169 per kWh. 100

10

The continuous drop in costs 50

5
for solar panels is one of the
factors that have contributed to 0 0
2010 2011 2012 2013 2014 2015 2016 2017 2018
reducing CAPEX of utility scale
projects. It is important to note Auctioned solar capacity (GW) Solar price (USD/MWh)
that the reference prices for solar Auctioned wind capacity (GW) Wind price (USD/MWh)
electricity usually refer to utility-
scale ground-mounted solar;
however, the decrease of panel Figure 3: Global Average Prices Resulting from Auctions, 2010-18, (Source: IRENA)
prices has also contributed to
make rooftop solar a more viable
option for businesses. An important factor driving down panel prices over the past two years
is China’s decision to restrict its own domestic demand. This led to
Figure 3 shows how solar price
Chinese panel manufacturers to increase offerings to foreign markets,
has sharply declined parallel to
particularly in the Middle East.
a significant increase in solar
auctioned capacity.

3.2 GROWTH IN ENERGY STORAGE SOLUTIONS

Many MENA countries are looking to energy storage. The niche market of storage solutions evolved, and its
competitiveness increased. So far, molten salt is used both as a heat transfer fluid (HTF) as well as a thermal energy
storage medium. Similarly, lithium batteries’ efficiency properties are still the best compared to many substitutes
entering the market (see Section 5 for more in depth information). Ongoing R&D is looking at reducing levelized cost
of electricity (LCOE) through the use of a thermal storage medium that is capable of a wider temperature range than
molten salts – the current state of the art storage fluid used in tower CSP. Hydrogen as a storage solution is also
an up and coming technology. It should be noted that first compressed air energy storage projects are also being
launched.

Middle East Solar Industry Association 11

 3.3 CELLS AND MODULES

3.3.1 HIGH EFFICIENCY BI-FACIAL MODULES

High output modules, called bi-facial, are offering high efficacy modules in the market. They are expected to take a
large share in the market, particularly in utility scale projects.
460W
Bifacial modules use both its front and rear side of the solar panel. The ground reflectivity, also called as albedo
effect, increases energy generation. Different ground surfaces affect the level of efficiency of modules. As a result,
The King of Power
the design of bi-facial solar PV plants tries to ensure minimum shading to benefit from the rear side of modules.
Power generation gains can be more than 25%, helping to optimize LCOEs.
Ultra-high Efficiency of 20.78%
Bifacial technology is expected to increase in the region and has already been implemented in Egypt’s solar park in
Benban.

3.3.2 HALF CUT CELLS

Manufacturers now offer modules with half-cut cells. Half-cell modules offer lower resistance losses and improved
shading performance. This technology also has the potential to improve reliability as the operating current of each
cell is reduced by 50% and mechanical failures risks decrease due to the smaller size of each cell. Hence, half-cell
modules could provide improved energy yield and reliability across the MENA region.

3.3.3 PEROVSKITE SOLAR CELLS

Perovskite solar cells can absorb light more efficiently than silicon cells, allowing them to be extremely thin. They
are flexible, semi-transparent and lightweight. The transparency allows the installation of solar panels in farmlands
and remote locations. Perovskites solar cells have reached efficiencies of 27.3% in labs but have not yet resulted in
stable market products. Current challenges include toxicity, stability and lifespan issues due to sensitivity to air and
moisture.

3.3.4 HETEROJUNCTION CELLS

Several manufacturers offer heterojunction modules or heterojunction with Intrinsic Thin-layer (HIT) cells. These
modules generally utilize N-type cells that offer improved thermal coefficients for a greater energy yield at higher
operating temperatures.

3.3.5 GALLIUM ARSENIDE (GAAS) SOLAR CELLS

GaAs solar cells are already showing better results than silicon cells used in PV panels. However, Gallium Arsenide
is a more expensive semiconductor material often used for space technologies. However, GaAs solar cells are
considered very efficient. Researchers at National Renewable Energy Laboratory (NREL) believe that GaAs solar
cells could reach an efficiency up to almost 30% and does not lose efficiency when operating at high temperatures.
Their flexibility, lightweight and good low light performance make them an attractive technology.

3.3.6 OTHER NEW EXPLORED TECHNOLOGIES

Other technologies being considered include shingling, N-type and multi-busbar (MBB) modules. Improved
performance and reliability are important, but these other technologies are still being explored and require to be
developed further.

SOLAR OUTLOOK REPORT 2020 12

middleeast@jinkosolar.com | www.jinkosolar.com
 3.4.4 ROBOTIC CLEANING
3.4 NEW FIELDS OF ACTION
Due to soiling, solar plants are suffering from 0.4-1.1% of power output losses on panels. The longer the dust is left on
solar panels, the greater these numbers increase.

3.4.1 FLOATING SOLAR
Floating PV arrays are mounted
on platforms in the water instead
of rooftops or land-based areas.
This opens new avenues to
increase solar power installations
in the MENA region. They allow
the conservation of land for other
purposes than power generation
and bring several advantages:
• Designing in a unique structure
by providing self-buoyant bodies
for PV panels to be directly affixed
at tilted angles
• Reducing CAPEX due to limited
site preparation and construction
work
• Reducing OPEX as a result of
minimal cleaning
• Positive impact on the
environment by reducing water
evaporation as solar panels cover
the surface of water curtailing
algae growth, improving water
quality
Floating solar panel installation is
still an emerging industry. Existing
projects are mainly installed in
hydro plants, water reservoirs or
lakes and a few on the sea.
Despite advantages of floating
PV, environmental concerns, such
as possible habitat loss resulting
from blocked light, and risks, in
particular for materials in highly
salted water, remain and need to
be further studied.
Currently, the Dubai Electricity
and Water Authority (DEWA) has
developed a feasibility study for
the implementation of such a
project in the UAE.
The way cleaning robots are attached to panels affects a number of variables that have a bearing on the lifetime of a
project and the effectiveness of the cleaning process. Therefore, robots have been field-tested for over six years. So
far, panels are still showing damage over time with some types of robots.
For these systems, reliability will always be an issue. There is an extremely limited track record at scale in tough
environments. Many systems are beginning to fail after operating in harsh desert conditions. Only quality robotic
systems will survive in such environments in the future.
DEWA has focused its efforts on R&D solutions to soiling issues through installing sensors and devices to monitor
solar plants. The Dubai utility has revealed its findings on the degradation rate of PV modules in desert conditions, if
linear degradation rates are assumed;
• The best performing PV modules are mono-Si;
• Poly-Si PV modules degradation was 1.46% per year based on sensor-based approach whereas it was of 0.55% per
year based on clear-sky approach;
• Copper Indium Gallium Selenide (CIGS) solar cells had the worst performance with 3.9% per year based on the
sensor approach and 3.3% per year in clear sky approach;

• Cadmium Telluride (CdTe) PV modules showed high degradation rate of 2% per year based on the sensor approach
and 0.84% per year in clear-sky approach.
3.4.2 DEVELOPMENT OF BUILDING INTEGRATED PHOTOVOLTAICS (BIPV)
Building Integrated PV (BIPV) could be implemented with the use of organic PV or concrete PV cladding. However,
BIPV applications are still developing in the MENA region with very few installations. Distributed generation across
residential and especially commercial establishments is a key target segment for BIPV. As such, development of
regulation and policy around distributed generation, net metering and grid feedback will be key for the success of Attorney Advertising

the technology in the region. Subsidy reform is also a key factor that could define the level of adoption of distributed
generation projects and technologies like BIPV in the region.

3.4.3 ORGANIC THIN-FILM PHOTOVOLTAICS

Thin-film cells are formed by
depositing extremely thin layers of
PV semiconductor materials onto
a support material such as glass,
stainless steel or plastic. According
to the International Energy Agency
(IEA), thin-film modules used to
have lower conversion efficiencies
than basic crystalline silicon
technologies. However, this has
changed in recent years and now
the technology has the potential to
be less expensive to manufacture
than crystalline cells.
Organic thin film PV is still a
relatively new PV technology
since it follows a dramatically
different approach by using
organic absorber layers of less
than a micrometer. This leads to
high flexibility, ultra-low weight
and an ultra-thin solar solution.
OPV solutions provide unique
characteristics and are suitable
for:
• Non-straight surface application
(curved rooftops)
• Buildings with low static
characteristics (old buildings,
light weight industrial buildings)
integration into building materials
because of its thickness
• Flexibility and lightness, such
as tiles, rooftop materials, metal,
membranes, glass, etc.
The biggest challenge to this
technology is transforming from
R&D to a competitive market
product in terms of performance,
reliability and cost. Since OPV
is a revolutionary product, it will
require a lot of pioneer work in
terms of education and training
users, installers, projects partners,
engineers, etc.
Currently, R&D is focused around
three key topics of improvement:
enhancing efficiency, reliability
We Know Energy®
over lifetime and increasing cost
competitiveness. Over the last five years Bracewell’s award winning team has
represented developers and lenders on over 3.5GW of solar
OPV projects are expected to be projects across multiple jurisdictions in the Middle East region.
launched in the MENA region
mid- to end-2020, latest by 2021.
Diamond Developers are presently
experimenting OPV for some bracewell.com
installation at Sustainable city in
Dubai. TEXAS | N E W YO R K | W A S H I N GTO N , D C | CO N N E CT I CU T | S E AT T L E | DU B AI | LON DON

SOLAR OUTLOOK REPORT 2020 14 Middle East Solar Industry Association 15

 3.5 FOSTERING END USE THROUGH SOLAR ENERGY (TRANSPORT, DESALINATION, COOLING) 3.6 HYDROGEN AND SOLAR ENERGY
Being remote or grid-connected, small- or large-scale PV installations can provide clean and reliable energy sources Green hydrogen could play a
that can be used in many end user’s sectors. Most applications developed are standalone, such as water pumping, key role in a clean, secure and
street lighting, cathodic protection and communication sites. affordable energy future; however,
it is still in the development stage.
The dramatic drop of price of solar energy coupled with increasing competitivity of storage solutions will allow solar
energy for a number of usages that have traditionally been large consumers of fossil fuels and are a major source of Green hydrogen, produced
GHG such as transport, desalination, cooling and heating. through electrolysis of water using
electricity from renewable energy,
Fostering end use through solar energy is developing: presents a number of important
advantages that can contribute to
acceleration of energy transition,
and filling some voids, as it:
• There is an increasing consciousness that combustible engine automobiles and even electric vehicles (EVs), when
electricity still generated by fossil fuels, make little sense environmentally. Attention is turning to solar powered • Allows production of hydrogen
charging stations with expected rise of EVs (turning point is anticipated around 2023-2024 with the arrival of a wide without CO2 emissions and/or
range of new generation competitive EV cars on the market). polluting particles
• Enables the storage of renewable
energy in large quantities and
• The share of desalination in the region is expected to represent 15% of the total final energy consumption by 2040. over a long period of time,
Hence, the use of clean energy for desalination may have a major impact on the region carbon emissions: providing the increased flexibility
and facilitating management of
inter-seasonality issues
Large scale applications on site for desalination are becoming possible:
• Provides solutions to face the
- Increase of capacity and decrease cost of storage bring solutions to the issue of intermittency and necessary challenge of balancing supply
stability of power for reverse osmosis (RO becoming the rule for desalination in the region). Combined with and demand that will continue
cheaper solar power, clean desalination is becoming a more economically viable option. to grow with the increase of
renewable energy. Hydrogen
- New technologies are under development in which the desalination process may, in the future, also contribute offers the opportunity to be
to the grid excess electricity. used for transmission system
operators as a load for primary
and secondary control power.
“Hydrogen produced from
Large scale clean desalination on grid is also becoming an option:
- Increasing initiatives advocate provision on grid of renewable energy through wheeling, clean electricity
certificates or specific Power Purchase Agreements (PPAs) between utilities and/or investors in solar energy
3.7 FURTHER GROWTH IN DISTRIBUTED GENERATION
and end user facilities.
Distributed solar is on the rise
and will play a growing role in the
In MENA, Morocco is already developing clean desalination facilities on a large scale and recent tenders in the future in the optimization of the
region, in UAE and KSA, have allowed the inclusion of component of electricity from renewable energy sources. The new energy mix.
UAE’s Sharjah Electricity and Water Authority (SEWA) has also announced that it aims to convert its desalination
installations to clean energy by 2035. • The UAE, in particular Dubai,
is taking the lead in the region.
The Shams Dubai program
was launched in 2015 to build
PV capacity for residential,
commercial and industrial
buildings. In October 2019, 1,354
photovoltaic installations in
Dubai were already connected
with a total capacity of 125
megawatts (MW).
SOLAR OUTLOOK REPORT 2020 16
renewable electricity – achieved
through an electrolyser – could
facilitate the integration of high
levels of variable renewable
energy (VRE) into the energy
system.” According to IRENA’s
Hydrogen from Renewable Power
report in 2018.
• Completes the missing link to a
100% carbon free energy system
as it is a multipurpose energy
vector (industrial processes,
injection in gas networks,
reconversion into electricity
via fuel cells and gas turbines,
possible fuel for vehicles,
solutions for cold and heat
thermal needs of buildings).
• Can be utilized to produce
chemical carriers such as
ammonia that may be transported
and used at destination to
produce electricity
• Could be in the future even
more environmentally friendly
with direct solar water splitting
or photolytic processes using
light energy to split water into
hydrogen and oxygen. These
processes are currently in the
very early stages of research
• After the successful introduction
of the Safaqat project in Hatta,
UAE, whereby 640 villas were
retrofitted with solar rooftop
panels, the approach was
expanded to other buildings
under the Shams program. The
Safaqat was based on provision
of a complete PV kit and zero
percentage finance. In January
2019, Dubai launched an initiative
to further boost the movement
with support to equip 10% of
homes in the emirate with
rooftop solar as part of the 50-
but offer long-term potential for
sustainable hydrogen production
with low environmental impact.
Ultimately, green hydrogen
can provide the region with
abundance of competitive solar
energy resources and means to
export electricity to other markets
lacking sources of renewable
energy. It may enable fossil fuel
producing countries to better face
diversification and to remain key
players in the international energy
market.
The future of direct solar water
splitting processes started
evolving in the GCC. DEWA has
launched the development of first
pilot project that is deployed on the
site of EXPO 2020. An increasing
number of stakeholders in UAE,
KSA and Oman are looking into
even larger projects.
year charter for the emirate as
announced in January 2019.
• Provision of solar panels is
becoming an integrated part of
energy retrofitting of existing
buildings and sustainable real
estate new projects.
Middle East Solar Industry Association 17
• DEWA connected a number of
distributed solar projects at its
own premises, e.g. 1.5 MW plant
at Jebel Ali Power Station and
partnered with 19 government
entities to equip schools,
mosques and facilities.
• Abu Dhabi and the Northern
Emirates are also developing
similar projects, but issues
related to management of the
grid have led Abu Dhabi to
slow down the adoption of a
net metering system. Tools to
manage the grid with connection
by increasing number of sources
are going to be essential.
• Oman has engaged phase 2 of its
Sahim rooftop solar.
Fund (SIDF) will foster this
trend. Regulatory framework to
allow exchanges with the grid is
understudy by the Electricity Co-
generation Regulatory Authority
(ECRA).
Jordan, Lebanon, Tunisia, Bahrain,
Pakistan and to some extent
Morocco and Egypt, have adopted
net-metering policies. Similarly,
recommendations for it have been
issued in Algeria.
C&I Segment Specificity
Distinguishing itself from the
residential and utility-scale solar
industry sectors, commercial and
industrial solar—or C&I – is visibly
growing.
C&I pipeline is large and
encompasses a wide variety of
customer types, solar designs and
project sizes. Often, regulation is
not an issue for the development
of solar production capacity in
the premises of the installations
themselves. However, land
availability is the issue in the
absence of net metering or
wheeling regulation. Cost
effectiveness of the overall project
is also impacted due to increased
need to add storage capacities to
absorb excess power production
issues.

• In Egypt, all administrative C&I drivers are based on:

buildings in the New
Administrative Capital are
expected to be equipped with
solar rooftop.
• In Kuwait, if price of electricity
remains low, the private sector
will not be incentivized to invest
in solar power. The leadership
decided in 2018 that government
buildings shall include no less
than 10% of the building peak.
Total capacity for 73 projects for
10 government institutions are
estimated at 2,200 MW.
• Reductions of subsidies of
electricity tariffs (at different
stages in UAE, KSA, Oman,
Jordan)
• Setting up of regulatory
framework, in particular for
wheeling and net metering (UAE,
Oman, Jordan, under study in
KSA)
• Incentive policies with programs
like Shams Dubai or Oman’s
Sahim, covering larger areas

• In Bahrain, key projects call

for 50 MW of energy to be
generated via decentralized solar
at government buildings, along
with 30 MW from new housing
units through the Ministry of
Housing and 10 MW from new
town developments.
• In KSA after a first deployment
of solar PV on the roof of a
Mosque in Riyadh, deployment
to other mosques has been
recommended by King Abdullah
Petroleum Studies and Research
Center (KAPSARC). The signing
of a first PPA for on-site solar PV
for an agro-industry has also led
to more interest in the industry
and a pipeline of projects is
developing over the country for
industrial facilities. The launch
of a financing scheme recently
by Saudi Industrial Development
of solar rooftop application
contribute to trigger a movement COMMERCIAL
towards use of solar PV (and/
or hybrid sources of energy, in
Oman for example).
AND
C&I projects in Morocco are
developed under Law 13-09 of
INDUSTRIAL
2010 on renewable energy. The
law allows free installation under
20 kW and simple declaration with
SOLAR
light procedure between 20 kW
and 2 MW. Four European banks IS
have launched a funding line,
Morocco—Sustainable Energy
Financing Facility (MORSEEF), VISIBLY
that can cover up to 10% of the
CAPEX. Therefore, many small
projects between 50 kWh -100 GROWING
kWh, as well as 2 MW projects,
have been implemented in
particular around Casablanca and
Marrakech.

SOLAR OUTLOOK REPORT 2020 18

 3.8 INCREASED FOCUS ON ENERGY PLANNING

Input to the grid is increasing with;
- large utility scale renewable
energy projects entering in
operation;
- growing number of distributed
sources of energy that can upload
additional electricity.
Combined with development of
Internet of Things (IoT) connected
devices of peer-to-peer networks
and with impact of energy
efficiency gains, these trends
make the energy system more and
more complex.
Better understanding of this
4. Solar Projects
complexity is key for policy, predictive tools is becoming more
regulations, investment choices, pressing. 2019 – 2021
identifications of necessary
backups (energy security) and The Department of Energy of
adequate measures to foster the Abu Dhabi is leading the way. It
transition from uni-directional has engaged the development
of a projection of the emirate’s Table 1: Projects Under Construction, 2019
power flow to the multi-directional
flow. All of this requires framework potential energy future until 2050
that can allow for dialogue with all through an Integrated Energy
Projects Currently Under Construction 2019
categories of stakeholders. Model, allowing to assess trade-
offs and opportunities. Such
Project Name Country Technology Used Capacity Status
IRENA energy roadmaps for several flexible planning tools may
years already supported better prove themselves increasingly
Benban Egypt PV 1.8 GW Construction
understanding of challenges and necessary as sources of clean (1400 MW commissioned)
opportunities to foster transition energy multiply and diversify
at global, regional and in some and frontiers between energy
Al Husainiyah Jordan PV 50 MW Construction
cases, such as the UAE, national producers and users blur, creating
levels. However, the need for more intricate interactions. Noor Tafilalet Morocco PV 120 MW Construction
detailed hands on analysis and
Miraah CSP Oman CSP 1 GW Construction

Sakaka Saudi Arabia PV 300 MW Construction

3.9 SOLAR COIN
Al Maktoum phase 4 UAE CSP -PV 950 MW Construction

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was produced. Blockchain digital tokens are made by the SolarCoin Foundation at a rate of one SolarCoin per MWh
of solar energy generated. Any solar plant may receive digital solar coins as a reward for their positive contribution to
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owners to register solar systems with the SolarCoin Foundation. The coins are distributed once production totals
have been submitted.

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SOLAR OUTLOOK REPORT 2020 20 Middle East Solar Industry Association 21

Table 2: Upcoming Projects in MENA region
Upcoming Projects
Upcoming Projects
Project Name Country Technology Used Capacity Status
Project Name Country Technology Used Capacity Status
West Nile Egypt PV 200 MW Development Phase
Project Name Country Technology Used Capacity Status
Kom Ombo Egypt PV 200 MW Awarded
West Nile Egypt CSP 600 MW Planned
West Nile Egypt CSP 100 MW Announced
Round 3 Jordan PV 150 MW Announced
West Nile Egypt CSP 100 MW Announced
KNPC Kuwait PV 1500 MW Tender Phase
Jeddah Saudi Arabia PV 300 MW Tender Phase
Shagaya Phase 3 Kuwait PV 1.2 GW Announced
Mahd al Dahab Saudi Arabia PV 20 MW Tender Phase
Shagaya Phase 3 Kuwait CSP 200 MW Announced
Al-Rass Saudi Arabia PV 300 MW Announced
Al Kharsaah Qatar PV 700 MW Tender Phase
SAAD Saudi Arabia PV 300 MW Announced
Noor Midelt Morocco CSP - PV 800 MW Awarded
Wadi ad-Dawasir Saudi Arabia PV 70 MW Announced
Noor-Tafilalet Morocco PV 120 MW Tender Phase
Layla Saudi Arabia PV 40 MW Announced
Noor-Atlas Morocco PV 200 MW Tender Phase
Mahad al-Dahab Saudi Arabia PV 20 MW Announced
Noor Argana Morocco PV 200 MW Tender Phase
PIF Saudi Arabia PV 2.6 GW Planned
Ibri Oman PV 500 MW Awarded
ANME Tunisia PV 1,700 MW Announced
NA Oman PV 1000 MW Planned
Tunisia PV Tunisia PV 500 MW Awarded
Pakistan PV 400 MW Announced
Sindh Solar Energy Al Maktoum 5 UAE PV 900 MW Awarded
Program
Pakistan PV 20 MW Announced
Al Dhafra UAE PV 2000 MW Tender Phase
Medina Saudi Arabia PV 50 MW Tender Phase
Abu Dhabi
UAE PV 2000 MW Expected
location to be defined
Rafha Saudi Arabia PV 45 MW Tender Phase
Sawa 1 Iraq PV 30 MW Tender Phase
Qurayyat Saudi Arabia PV 200 MW Tender Phase
Sawa2 Iraq PV 50 MW Tender Phase
Al Faisaliah Saudi Arabia PV 600 MW Tender Phase
Khidhir Iraq PV 50 MW Tender Phase
Rabigh Saudi Arabia PV 300 MW Tender Phase
Iskanariya Iraq PV 225 MW Tender Phase
CREG Algeria PV 150 MW Tender Phase
Jissan Iraq PV 50 MW Tender Phase
Askar Bahrain PV 100 MW Awarded
Karbala Iraq PV 300 MW Tender Phase
West Nile Egypt PV 600 MW Development Phase
Al Diwania Iraq PV 50 MW Tender Phase

SOLAR OUTLOOK REPORT 2020 22 Middle East Solar Industry Association 23

 5. Energy
Storage

Intermittency has been one of the Table 3: Storage Solutions

main issues for a wider adoption
of solar energy. Increased
competitive storage solutions Storage Technology Rated Capacity (MW)
are, however, quickly changing
the landscape. Storage solutions
supplying a demand for 24 hours Compressed Air Energy Storage (CAES) 7.40
seems to be within reach. CSP
projects are anticipated to reach
16 hours of energy storage in the Electrochemical Storage 3,297.1
upcoming projects in the UAE and
Morocco.
Hydrogen Energy Storage 20.5
Today the total global energy
storage capacity stands at
187.8 GW with over 181 GW of
Liquid Air Energy Storage 5.4
this capacity being attributed to
pumped hydro storage systems.
So far, pumped hydro storage
Pumped Hydro Storage 181,190.6
has been the most commonly
used storage solution (Table 3).
However, PV plus storage as well
Thermal Energy Storage (TES) 3,275.1
as CSP solutions are paving the
road towards a different future.

5.1 SOLAR PV PLUS STORAGE

MENA countries benefit from
high level of solar irradiation,
giving solar energy an advantage
to produce power during the
day. However, with competition
of subsidized fossil fuel based
continuous energy production,
intermittent solar energy is at a
disadvantage. Therefore, solar
projects combined with storage
solutions will be necessary to
allow more extensive growth of
competitive solar energy.
With the dramatic drop of price of
solar energy such combination is
tending to reach grid parity. Solar
plus storage solutions are evolving
from a niche market to a large
market. Growing exponentially, Such properties are making solar-
25 GW of battery storage projects plus-storage more appealing to
exist presently with roughly 77% several applications such as:
under development. According to
a study made by Bloomberg New • Peaker Plants: Solar PV plus
Energy Finance (BNEF) in 2018, storage solutions are seen as
almost 4 GW of battery storage peak power demand replacers
systems went online and by 2020. to gas fired plants at much lower
This number could double, as costs and shorter construction
market research experts predict. periods. Integrating battery
storage with solar is a reliable
Lithium Ion Batteries source that could easily and
Dominate the PV Plus effectively align demand and
supply needs of peaker plants.
Storage Market With further decrease of prices,
storage could become a very
Lithium ion batteries capability
useful tool for load shifting
to act as quickly as a few
and increase of flexibility of
milliseconds beats the response
the grid. 
time of gas turbine generators.

Middle East Solar Industry Association 25

• Other solutions such as
renewables integration, peak
shaving, energy shifting,
ancillary services, microgrids,
Transmission and Distribution,
investment deferral and backup
are attracting economically
viable and reliable solutions to
the market.
Lithium Ion batteries are becoming
cheaper with the volume weighted
average of lithium-ion battery pack
price fell 85% between 2010 and
BATTERY PACK REAL PRICE (2018 USD/KWH) : VOLUME WEIGHTED AVERAGE
1400
1200
Real Price (2018 USD/kWh)
1000
800
600
400
200
0
Figure 4: Lithium Ion Battery Pack Prices Trend (Frost & Sullivan)
According to a study made by BNEF in 2018, almost 4 GW of battery storage systems went online. By 2020, this
number could double, as forecasted by market research experts.
Recent developments:
• Jordan: Solar Plus Storage Plant
in Al Mafraq is currently operating
at a total capacity of 23 MW solar
PV plant and a 12.6 MW energy
storage component. Phase 1 of
12 MW of solar PV went online in
October 2015 and was followed
by Phase 2 for 11 MW PV and
12 MWh of lithium-ion battery-
based energy storage. It is the
largest and the first PPA power
storage project in MENA.
• Lebanon: Early 2018, Lebanon’s
Ministry of Energy and Water
received 75 expression of
2018 (Figure 4). Looking closely
at the recent years, battery prices
decreased by almost 40% between
2016 and 2018. Furthermore, the
average lithium-ion battery pack in
2030 could see a decline in cost as
$62 per kWh, according to BNEF.
Lithium-ion batteries are so far the
most commonly used in the market
with 87% of the storage capacity is
installed, under construction and
announced (leaving out pumped
hydro). However, substitutes
1160
899
707
650
577
2010 2011 2012 2013 2014
Battery Pack Price (real 2018 USD/kWh)
interests (EOIs) to develop a
300 MW solar battery storage
capacity. Evaluation of the
proposals has been a difficult
issue and European Bank for
Reconstruction and Development
(EBRD) announced in 2019 that it
will provide assistance.
• Oman: Oman’s state-owned
Rural Electricity Company
(Tanweer) tendered in August
2019 eleven solar-diesel-storage
hybrid projects with a combined
capacity of 146 MW for non-
interconnected areas. The project
capacity requirements include
48 MW of solar, 70 MW of diesel
to lithium-ion batteries have
been introduced and are under
development. In the future, other
technologies based on flow
batteries and hydrogen storage
could develop. Nevertheless,
those alternatives need to be more
mature and require additional
R&D to be competitive in terms
of pricing, reliability, speed of
deployment, weight, and energy
density.
373
288
214
176
2015 2016 2017 2018
generator and 28 MW of battery
storage system. Projects will be
under a build, own, operate and
transfer (BOOT) model with 15-
year power purchase agreement
(PPA).
• UAE: In Abu Dhabi, the ongoing
tender for the Al Dafrah PV Park,
totaling up to 2 GW, includes an
option for a 300 MWh battery
storage. The project is expected
to be fully operational by 2022,
marking the first time in the
region that solar and storage will
be integrated at this scale.
Middle East Solar Industry Association 27
 5.2 CONCENTRATED
SOLAR POWER
CSP is still marginal and considered
to be expensive; however, in 2018,
the MENA region’s CSP capacity
had doubled compared to the
previous year reaching 725 MW
of installed capacity (Figure 5). It
is expected that CSP projects will
become even more competitive in
the future.
CSP has the ability to be
dispatchable, consistent power
throughout the day and night
which will foster solar energy in
countries that have a high direct
normal irradiance (DNI).
MENA CSP CAPACITY
800
600
Capacity (MW)
400
200
0
2009 2010
Algeria
Figure 5: MENA CSP Capacity (Frost and Sullivan)
Yet CSP development, due to high
DNI requirements, will be limited
to some countries only, while PV
will benefit from a wider market.
In addition, CSP has a longer cycle
of development and execution
compared to other renewable
technologies given the land size
required, detailed studies and
design, complex financing and
longer construction periods.
According to the US Department of Energy’s SunShot initiative
was launched in 2011 to reduce the total cost of solar energy by
75%. The solar industry achieved the 2020 cost target in 2017 of
$0.06 per kWh for utility scale PV solar power. The program set
new goals that included 2030 targets for CSP:
$0.05 per KWh $0.10 per KWh
for baseload for peaker
configurations configurations
(with a minimum of 12 hours (with less than six hours of
of storage) storage) designed to deliver
electricity only when it is most
highly valued by grid operators
Such targets are very competitive with other dispatchable
power generators that will make fossil fuel and other subsidies
less advantageous.
2011 2012 2013 2014 2015 2016 2017 2018
Egypt Morocco Saudi Arabia UAE
To further reduce the cost and boost • Creating a knowledge transfer
CSP projects, the development of of cost-efficient, time-saving
a sustainable project pipeline to construction methods
allow the industry to mature is key
requiring: CSP technology using parabolic
panels is a mature and efficient
• Enhancing the supply chain technology. However, the ambition
to drive down the cost of key to move into power towers (central
components receiver systems), which operate at
higher temperatures, still requires
improvements.
Middle East Solar Industry Association 29
In MENA, the main concern is
dealing with dust, humidity and
other atmospheric substances
that affect the system’s efficiency.
Since the distance between
the last heliostat and the solar
tower receiver is in the range of 1
kilometer, these external factors
impact the output of the system.
Many consider that alternative
solutions, such as multiple tower
concept or having a smaller
heliostat field, could be more
efficient.
CSP is coming back into the
picture with such breakthroughs.
To solve intermittency, co-locating
and integrating PV and CSP could:
• Cover the auxiliary power
consumption of the CSP plant
during the day
CSP TARIFFS (US CENT/KWH)
8
• Hybridize the generation to focus
each technology to the period
of the day when it is the most
competitive (PV during the day,
CSP during the night).
Decrease of prices will support
that trend (see Figure 6):

- New advanced technology is 7

arriving on the market allowing
CSP to exceed 1,500°C (and will
6
allow use for more industries, green
Mohammad Bin Rashid Al Maktoum Noor Midelt
hydrogen or syngas) using precise
Solar Park Phase 4 - UAE Hybrid Solar Plant - Morocco
data management and software
to align a large array of mirrors to
accurately reflect sunlight on to a
single target. Figure 6: Recent CSP Tariffs (US Cent /kWh)

Noor 1 CSP - Morocco

ACWA Power

CSP’s Regional Leaders

UAE and Morocco are the top countries in CSP projects in the MENA region.

The Noor Midelt Hybrid Solar Plant (800 MW) in Morocco, awarded in mid-2019, will provide dispatchable solar energy
during the day with until five hours after sunset. The construction of the project is expected to start in end 2019 and
the commercial operation is set for 2022.

In the UAE, the Mohammad Bin Rashid Solar Park Phase IV (950 MW) will feature the tallest solar tower (260 meters)
using parabolic CSP and PV. The phase will generate 700 MW of CSP (600 MW from a parabolic basin complex and
100 MW from a solar tower) and 250 MW from PV panels.

SOLAR OUTLOOK REPORT 2020 30


6. Highlights
in MENA’s
Leading Solar
PV Markets
A. ALGERIA
Current Situation:
Demand for electricity has grown
by average 6.91% annually over the
past years, fed by a yearly increase
of population around 1 million (one
of the highest rates in the world).
Algeria primarily uses oil and
gas to meet domestic demand.
Only a small fraction of domestic
consumption derives from coal,
hydroelectric and renewables with
total fossil fuel subsidies remaining
at 9.5% of the country’s share of
gross domestic product (GDP).
At the same time, the country
has witnessed a slow start to
the energy transition. Algeria
adopted as early as 2004 the first
renewable energy feed in tariff
(REFIT) in Africa to speed up the
adoption of renewable energy
sources. The scheme pertained
to plants with power generation
capacity exceeding 50 MW. The
EXISTING PROJECTS
- In 2011, a 150 MW hybrid plant in
Hassi R’Mel was commissioned,
of 132 MW gas and 30 MW solar
by an Algerian-Spanish joint
venture.
- In January 2016, the country
commissioned its first utility
scale PV facility, a 233 MW solar
plant located in the province
of Adrar. The solar complex
comprises of 16 separate solar
parks and reduced issues of
power shortages in the region.
SOLAR OUTLOOK REPORT 2020 32
In this section, each country profile briefly summarizes the current energy
situation providing updates on both the utility scale and distributed solar
segments, with a focus on PV and CSP.
REFIT is a premium paid per kWh
above a base tariff (average annual
electricity price in Algeria). The
country’s REFIT is expressed as a
percentage of the base electricity
tariff including 300% of the base for
PV and 200% for CSP.
However, the share of renewable
energy in Algeria’s generation
mix growth is still limited. In
2018 according to IEA, installed
renewable energy capacity was of
670 MW out of which solar energy
represented 343 MW (2.5% of
the total energy capacity). IRENA
underlined that most of the PV
development has so far taken place
in in isolated areas in the southern
part of the country.
Although targets have been
set, the National Program for
the Development of Renewable
Energies (NPDRE) is lagging.
In 2015, the country updated
- In March 2016, a 48 MW of solar
PV capacity in the same province
was commissioned consisting
of six plants in Adrar (20 MW),
Zaouiet Kounta (6 MW), Reggane
(5 MW) Aoulef (5 MW), Timimoun
(9 MW) and Tsabit (3 MW).
- A utility-scale project of 20
MW PV was commissioned in
September 2017, in the province
of M’Sila.
its 2011 Renewable Energy and
Energy Efficiency Development
Plan, putting greater focus on
deployment of utility scale PV
and onshore wind. However, it
reduced the previous objectives
to a capacity target of renewable
generation share to 27% by 2030.
The updated version of the program
aims to install 4,500 MW of new
projects until 2020 and overall of
22,000 MW until 2030 Algerian
capacity, split as follows:
• Solar PV: 13,575 MW
• Wind: 5,010 MW
• Solar thermal: 2,000 MW
• Biomass: 1000 MW
• Cogeneration: 400 MW
• Geothermal: 15 MW
- A mini-grid application of solar
energy was brought about by a
cooperation of Korean and local
groups. The mini solar power
plant has a capacity of 28 kW and
was installed on the rooftop of a
research division in the province
of Adrar.
PRESENT PROJECTS
A new auction system introduced
in 2016/2017 was followed by
the approval, in June 2018, of
several projects having a total
capacity of 200 MW of PV. The
new tenders, which will be open to
both domestic and international
players, will select grid connected
IPP projects totaling 150 MW and
offgrid hybrid projects using gas
or diesel coupled with solar for
Outlook:
The country’s challenges to
expand solar power include:
• A strong reliance on fossil fuel
subsidies
• Domestic content rules and
obligation to produce PV
components locally, limiting the
range of participating companies
resulting in facilities encountering
delays in production and project
scheduling.
Renewable Energy Partner
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British solar company focusing on ON & OFF grid projects
ADVISORY
a combined capacity of 50 MW.
The grid connected projects, from
10-50MW, will be developed on a
build, own and operate (BOO) basis
under a 20-year PPA.
• The Algerian Electricity and
Gas Regulation Commission
(CREG) tendered 150 MW in
southwestern region (Ghardaia,
Biskra, Ouragla and El Oues) but
received only eight proposals for
a total of 90 MW. It declared only
one successful bidder which was
• Access to financing from
international banks and
institutions due to a ban on foreign
debt in country; local borrowing
is expensive as interest rates are
high and tenures are low.
• Procurement and installation
costs of solar panels as well as
generating solar energy remain
high compared to natural gas.
• There is a lack of government
incentives particularly for the C&I
segment.
PROJECT DEVELOPMENT
www.rnepartner.com
contact@rnepartner.com
RnE
E nR
awarded 50 MW in the form of 5
projects of 10MW each.
• Sonegalz tendered 50 MW for
offgrid hybrid gas/diesel and
solar projects in December 2018.
• Projects coming along in the next
few years are aimed at drastically
lowering the cost of existing
power generation stations in
the south of Algeria, which are
primarily via fossil fuels.
However, recent declarations seem
to indicate a new determination
to develop solar energy more
massively. In August 2019, the
Algerian Minister of Energy
announced a plan to launch 22
solar projects of 400 MW each.
This was followed at the end
of 2019 by the signature of a
memorandum of understanding
with DII Desert Energy indicates
in an effort to revive the Desertec
project.
OFF-GRID
Middle East Solar Industry Association 33
/ Perfect Welding / Solar Energy / Perfect Charging

C. EGYPT
3 REASONS WHY YOU
NEED A SMART METER
FOR YOUR INVERTER! Current Situation: to 2035, the Egyptian government
has set renewable energy targets
Investment Law No 72/2017 was
put in place with incentives such
With the electricity demand of 20% of the electricity mix by as tax reductions.
1 Record and monitor not just your solar production, but also reaching up to 27.6 GW in 2019 and 2022 and 42% by 2035. The ISES
your power consumption! a forecast, by Frost and Sullivan, includes 52 GW of both large-scale To foster the development of
of 67 GW in 2030, Egypt is in need and distributed on grid renewable renewables, Egypt uses different
2 Save your money thanks to its feed in management function: of substantial additional power energy by 2035. Over the past few frameworks:
Zero percent export is possible! capacity. years, a favorable policy to foster
3 Monitor your system/energy and your whole PV system the development of renewable
As specified by the Integrated energy projects covering new
consumption with net connectivity from anywhere in the world!
Sustainable Energy Strategy (ISES) and existing projects through
What is a smart meter?
It is a bi-directional meter which optimises self-consumption and records
the user’s load curve. Together with the Solar.web, it presents a clear
overview of power consumption within the facility.
NET METERING
For more information, contact: contact.middleeast@fronius.com

Introduced in 2013, by Egypt Electricity Regulatory Authority (ERA), this method promotes distributed solar power
and encourages the C&I sector to feed the electricity into the national grid. The maximum capacity allowed recently
increased from 5 MW up to 20 MW. However, such projects, mostly PV, are still limited due to intermittency and power
B. BAHRAIN stability issues, and their further development will depend on increase of storage capacities.

Current Situation:
Bahrain is highly dependent on
fossil fuel for energy, and with a
rapid population growth, demand
for power has grown to 3.6 GW in
2019. It is expected to reach up to
7.5 GW in 2035. This has driven
the government to search for ways
to curtail demand, for cooling
in particular and to diversify the
energy supply.
Bahrain’s 2030 Economic Vision
aims to transform and shift from
an oil dependent economy to a
more diversified and competitive
landscape. In addition, the National
Determined Contribution of Bahrain
is mainly based on small scale
utility-based renewable energy
projects and increased energy
efficiency in transport, buildings
and industry.
The Kingdom’s plans evolved with
the introduction of the National
Renewable Energy Action Plan
(NREAP) and the National Energy
Efficiency Action Plan (NEEAP) in
2017:
- The NREAP plans policies, targets
and initiatives to implement
renewable energy options. It aims
at 5% of renewable energy by 2025
and 10% by 2035. To achieve this
target, net metering and tender-
based FIT schemes as well as
mandatory renewable energy
requirements for new buildings will
be implemented.
- The NEEAP includes 22 initiatives
across all economic sectors that
target a national energy efficiency
increase of up to 6% by 2025
equating to energy savings of 5,800
GWh on primary energy equivalent
basis. Cumulative energy savings
for the years 2016 – 2025 will
exceed 25,000 GWh on primary
energy equivalent basis.
PROJECTS
In early-2019, a first 100 MW PV
Park at the Askar site ($360 million)
was awarded. It will be built under
a BOOT model on a landfill site,
taking into consideration the
limited space to develop large
scale solar parks in Bahrain.
Due to the scarcity of available
land, the country is also focusing
on rooftop and private projects
with an aim to install 255 MW by REFIT PROGRAM
2025 using net metering. So far, a
3MW solar array rooftop project
was launched at eight locations in • Round 1: The REFIT program, which ran between October 2014 to 2016, targeted large-scale renewable energy
2019. The project is split into three projects for a total of 4,300 MW of solar and wind by 2017. It had a decisive impact and resulted in a number of 20
phases of 1.25 MW, 1 MW and 750 MW to 50 MW projects. In addition, the program proposed tariffs for residential distributed PV (usually below 10 kW)
kW. The electricity generated from up to systems between 200 kW to 500 kW.
the 3 MW solar plant will be sold
• Round 2: Launched in September 2016 and aimed at implementing 2 GW of renewable energy. It resulted in a
to the offtaker at a fixed price for a
substantial increase in the number of projects achieving financial close in comparison with Round 1. Although the
period of 20 years under a PPA.
ambitious target was not achieved, the program has completed between 1.4 GW and 1.8 GW of additional renewable
generation capacity at a competitive tariff of $0.084 per kWh. This was a significant step-down from the tariff of the
Outlook: Round 1 Program ($0.1434 per kWh). Benban Solar Park is implemented with this scheme.
The country is moving forward with Despite tariffs fixed up to 40% lower than round one, the long-expected currency guarantees and the inclusion of
Askar Solar PV project that targets international arbitration terms played a major role to secure financing from multilateral financial agencies and banks
Bahrain’s REN goals. However, and allowed the success of the second round of Egypt’s REFIT program.
with physical space limitations,
Bahrain is focusing its efforts on
developing its C&I segment. The
current rooftop projects under
tender will be used to generate IPP MODEL PROJECTS
power for self-consumption with
excess power being fed to the grid.
Wind and solar projects from 100 MW to 600MW are found under competitive bidding scheme based on IPP model. In
The country is also currently August 2018, Egyptian Electricity Transmission Company (EETC) and New and Renewable Energy Authority (NREA)
exploring various modalities of invited both local and foreign developers to participate in the auctions for the 250 MW wind project, 200 MW of PV
incentives for the private sector and 50 MW of CSP.
investments in renewables and
energy efficiency. As a result, a
diversified energy mix is anticipated
to develop in Bahrain.

SOLAR OUTLOOK REPORT 2020 34 Middle East Solar Industry Association 35

 KEY PROJECTS STATUS

• The Benban Solar Park, under
the FIT model, has an estimated
investment up to $4 billion and
is currently under construction
with a planned total capacity of
1.8 GW. Benban will include 41
solar power plants located in
the Aswan governorate. Once
operational, the solar park will cut
carbon emissions by two million
tons per year.
In May 2019, 19 projects of
the Benban Solar Park were
reportedly connected to the grid.
Six months later, in November,
Dr. Mohamed El-Khayat, NREA
chairman, said that a total of 32
plants with a capacity of 1,465
MW were completed and started
commercial operation.
Currently, the construction of
four additional new solar power
plants with a capacity of 200 MW
is engaged on the Benban solar
park site.
Egypt saw the first tenders that 18 offers had been received
outside of REFIT program with the ranging in size from 200 MW to
introduction of: 500 MW. In September 2018, EETC
indicated that bids would only be
• Kom Ombo PV Solar Project : accepted for a maximum of $0.025
In October 2019, the EETC signed per kWh after seeing the price of
a solar PPA with a developer solar power fall below the $0.03
for a 200 MW plant at a price threshold a month earlier at Kom
of $0.0275 per kWh. This long- Ombo.
awaited project, in the pipeline
nearly a decade, is expected to be Details on implementation
completed in Q1 2021. conditions of West Nile Solar
project are expected to be released
• West Nile Solar Plant : With a soon.
capacity of 600 MW, the EETC
and the International Finance
Corporation (IFC) signed in April
2019 an agreement to fund
projects selected under auction
system.
The EETC launched the tender for
the 600 MW project in December
2017 signaling the procurement
of the country’s first tender for
solar under a BOO model. In
February 2018, it was reported

C&I AND STORAGE

The lifting of subsidies on fuel and electricity tariffs by the government that started in 2016 as well as the development
of energy storage solutions will play a major role in the increase of decentralized solar projects.

The first tender for a 20 MW PV solar plant with battery storage, located in the Red Sea area of Hurghada, was
announced by NREA for end 2019. The PV-storage project will be funded by a $85M facilitated loan from Japan
International Cooperation Agency (JICA).

Outlook:
Two aspects of Egypt’s regulatory framework will have to followed:

- The country aims to introduce a competitive electricity market, based on bilateral contracts together with spot,
balancing and ancillary services’ markets.

- The NREA formed a committee to bring together all the electricity sector stakeholders and was tasked to draft the
Exclusive Regulations of the Renewable Energy Law No. 203/2014. The work of the committee is expected to be
released in the Q4 2019.

SOLAR OUTLOOK REPORT 2020 36

 NET METERING AND WHEELING
D. JORDAN
In 2018, 300 MW were attained through net metering and wheeling. Those schemes have attracted the C&I sector
seeking to reduce their electricity bills. Supermarkets chains and hospitals, for example, have turned to wheeling
solutions. A dedicated regulatory framework has made adoption of distributed solar more widespread.
Current Situation:
However, the government decided in early-2019 to suspend both net metering and wheeling projects above 1 MW
Jordan is seeking to reduce its high level of dependency on fossil fuels (which are mostly imported) that reached until grid capacity and conditions to adjust to the increasing uptake of renewable energy have been fully assessed.
92% in 2018, with a total cost of $2.82 billion equal to 10% of its GDP. Jordan is also facing a 0.2% annual growth of
electricity demand.

As a result, Jordan has put forth an effort to diversify its sources of energy and to foster locally produced renewable
resources. By the end of 2018, Jordan produced 1,130 MW of power from renewable energy sources, accounting for SOLAR HEATING
about 11% of total electricity requirements.

The country’s objective is: The Jordan Renewable Energy & Energy Efficiency Fund (JREEEF) has launched a project to bring hot water to all
parts of Jordan using solar. Awarded in 2017, 20,000 solar water heaters are expected to be installed in the residential
• Reach 16% of renewable energy production by the end of 2019. sector between 2013 and 2019.

• Achieve a 20% renewable share in energy mix in 2020.

• Double the present renewable energy capacity by 2021 to reach 2,400 MW, accounting for 30% of electrical installed
capacity and 20% of electricity generation. ENERGY STORAGE

To achieve these goals, Jordan has used a combination of utility-scale IPP projects with a smaller solar rooftop
initiative. Energy storage is pivotal to Jordan’s solar capacity development. To this end, the country is introducing energy
storage projects. It should be mentioned that it tendered in 2019 a feasibility study for a 30 MW pump storage system
to be installed on dams.

UTILITY SCALE SOLAR PROJECTS

• Jordan’s Renewable Energy Program: INTEGRATION INTO THE GRID, A CHALLENGE

› Round 1: In early 2019, the government had suspended the development of new renewable energy generation projects until the
completion of technical studies to assess the capacity of the electrical grid to handle additional capacity. However,
The first round of direct proposals to build under IPP scheme featured 12 PV projects totaling a capacity of 204 the continuation of the following projects was authorized under certain conditions:
MW. The projects implemented 10 solar plants in Ma’an and one in each Aqaba and Irbid that began operations
in 2016. • Round 3 projects are now required to demonstrate a reduction of energy costs, though the amount of the reduction
has not been specified.
› Round 2:
• Wheeling or net metering projects with a capacity under 1 MW.
Four projects of 50 MW each were awarded. Three are located in Mafraq Development Zone and one in Safawi.
The projects will be developed with feed-in tariffs of $0.0613 per kWh, $0.0649 per kWh, $0.0691 per kWh and
$0.0767 per kWh, respectively. Two 50 MW PV, Mafraq I and Empire PV solar plants, are already under operation
as of end 2019.

› Round 3:
150 MW of solar and 50 MW of wind power, including a storage option, are being carried out in Ma’an and were
planned to be completed in 2020. The electricity tariff bid for a 50 MW PV project was $0.0249 per kWh which is
significantly lower than the prices offered in round 2.
• Baynouna Project:
The 200 MW Baynouna project is the largest single solar energy project developed under PPA scheme. The project
is estimated to produce enough electricity to power approximately 110,000 homes while displacing 360,000 tons
of CO2 annually. It is expected to be fully operational in the first quarter of 2020.
Outlook:
Jordan is evaluating its solar energy mix and has some challenges determining and assessing the integration ofCSP
technologies including storage solutions. Feasibility studies should provide more information on whether CSP would
be an option between now and 2030.
At this stage, Jordan’s capability to strengthen the grid, commitment to achieve increased energy efficiency and
develop additional storage is key for the future market attractiveness.

SOLAR OUTLOOK REPORT 2020 38 Middle East Solar Industry Association 39

 E. KUWAIT

Current Situation:
Much like its neighbors, Kuwait’s
demand for electricity and power
has been rising sharply over the
past few years. The country’s
population grew by 2% from
2016 to 2017 while demand for
electricity increased by 3%.
Kuwait had set an objective of
integration of 5.7 GW of CSP, 4.6
GW of PV and 0.7 GW of wind into
the energy mix and targets 10% of
renewables in 2020. Moreover, in
December 2017 the new Minister
of Electricity and Water indicated
the country’s determination to
reach 15% by 2030.
After the launch of a first solar
plan of 10 MW in Sidrah by Kuwait
Oil Company (KOC), an additional
60 MW of renewable capacity
was due to come online by the
end of 2017. The country now has
only around 70 MW of installed
renewable energy against a 2030
target of 4,320 MW.

KEY PROJECTS

KNPC Project

Kuwait Petroleum Corporation
(KPC) and its subsidiaries are
targeting 15 per cent of their total
electricity consumption to come
from renewable resources.
Kuwait National Petroleum
Company (KNPC), a subsidiary
of KPC is engaging in the
development of 2,500GW of solar
energy by 2025 with Al - Dibdibah
Scheme.
Prequalification for a first phase
of a 1.5 GW PV facility renewable
energy complex has been engaged
in 2017 and in September 2018, the
tender launched for a 25-year EPC
contract. Submission deadline was
16 December 2018 and the contract
is yet to be awarded.
Al Abdaliyah Project
High uncertainty prevails on
the proposed integrated solar
combined-cycle (ISCC) facility
of Al Abdaliyah (60 MW of solar
power and 280 MW of natural gas).
The project, under Kuwait’s public-
private partnership (PPP) program
was initially launched in 2008.
A request for proposals (RFP)
was launched in November 2015,
but the tender was cancelled in
April 2017. Kuwait’s decision to
P.O. Box 92 Dasman, 15451 Kuwait, Tel: +965 23985210, Fax: +965 2398 5300 alnaki@aurorakuwait.com
retender the planned Al Abdaliyah
ISCC plant without a specified
date further indicates the country’s 2019, the Kuwait Authority for
difficulties in the materialization of Partnership Projects (KAPP)
PPP schemes. announced that a tender for the
third phase of Shagaya complex
would be launched in current
Shagaya Complex
fiscal year which ends in March
2020.
Marking the start of renewable
energy implementation, Kuwait By 2030, Shagaya should include
Municipality and Kuwait Institute 1,150 MW of concentrated solar
for Scientific Research (KISR) power, a 700 MW PV plant (split
developed plans for a 20 GW into 14 projects) and a 150 MW
renewable energy park, located wind farm, providing a combined
total installed capacity of 2 GW.
100 kilometers west of Kuwait City,
focused primarily on solar power
generation. The Shagaya initiative
was first conceived in 2009, but not
formally announced until 2013.
BY 2030
SHAGAYA
The project has 3 components
totaling more than 4,000 MW
capacity.
• The first phase was a pilot under
which, KISR awarded contracts
WILL
for a 50 MW CSP plant, a 10
MW wind farm and a first 10
PROVIDE A
COMBINED
MW PV that started commercial
operations in December 2018.
• The second phase includes the
KNPC project of Al Dibdibah TOTAL
and several projects of KISR. It
INSTALLED
is expected to start commercial
operation in Q1 2022.
• The third component of the
project, Al Abrag, consisting of
CAPACITY
several packages is targeting at
least 200 MW of CSP, 1.2 GW of OF 2GW.
PV and 100 MW of wind. In July

Middle East Solar Industry Association 41

 ROOFTOP PV
• According to the Ministerial decree
126/2018, all governmental
buildings are required to have
at least 10% of their building’s
peak demand come from rooftop
solar. The Ministry of Electricity
and Water (MEW) and Ministry
of Public Works (MPW) rooftop
solar initiative have integrated a
total of 1 MW capacity into their
buildings. The MEW parking and
six storage buildings have also
integrated 0.18 MW and 3.7 MW,
respectively.
• With the increase of PV
integration, MEW reservoirs
will also install solar PV to 25
locations with a total capacity of
300 MW. A capacity of 30 MW will
be integrated in the first phase at
Subiya, expected to be tendered
in Q4 2019.
• Kuwait Society for Science
Advancement (KFSA) promotes
and funds solar rooftops. It
introduced a pilot program for PV
panels on the roofs of 150 Kuwaiti
homes (1.6 MW) and several
cooperatives such as Al Zahra
and Al Adailiya.
• The Ministry of Education created
a scheme for solar rooftop on 100
school buildings of 1 MW and KPI
fosters their installation in the
commercial sector.
• Kuwait’s Public Authority
for Industry (PAI) signed a
memorandum of understanding
(MoU) with local firms Equate
Petrochemical Company and the
National Technology Enterprise
Company (NTEC) to install a
rooftop solar at the PAI office.
Upcoming PV rooftop tenders
include PV installations on the
roofs of existing and new parking
areas at:
• Emergency Department - Main
Workshops - Installed Capacity 2.7
MW
• Power Stations’ Spaces - Installed
Capacity 5 MW (expected Q2
2020).
• 10 MEW’s buildings 3.64 MW
(expected in 2022).

Outlook:
Kuwait has several governmental institutions that participate in the power sector. However, those institutions have
different mandates and the lack coordination thus affecting the country’s deployment of renewable energy projects.
The Higher Energy Committee was tasked to improve that situation to implement renewables in 2018. Similarly,
the limited recourse to PPPs in the power sector is still affecting the speed of investment for renewable energy
deployment.

FINERGREEN MENA
Dubai, UAE
mena@finergreen.com
www.finergreen.com

PARIS DUBAI SINGAPORE MEXICO ABIDJAN NAIROBI

SOLAR OUTLOOK REPORT 2020 42


F. MOROCCO
Current Situation:
Even though the local demand
of electricity has been stable in
Morocco in 2018, the production
has known some significant
increase with the connection to
the grid of a few projects (both
renewables and traditional) and
has grown by 8.2%. In H1 2019,
the demand increased again by
around 2.4% while the production
grew by 25.1%.
Strategie Energetique Nationale
Horizon 2030 includes an objective
of 2 GW of renewables including
hydropower, solar and wind making
up 42% of the country’s energy mix
by 2020 and 52% by 2030. The
investment cost for meeting the
52% target is estimated at $30
billion by 2030.
The Moroccan Agency for
Sustainable Energy (MASEN),
a public-private venture, was
established to lead the world’s
largest solar energy projects
development, Noor and Midelt.
Once completed these projects
will provide 38% of Morocco’s
annual electricity generation.
• The Noor Ouarzazate Project-
Phase 1 to 3: with a total capacity of
2000 MW, PV and CSP, developed
in five major sites: Ouarzazate,
Ain Bni Mathar, Foum Al Oued,
Boujdour and Sebkhat Tah.
Noor Ouarzazate 1 was the first
of the five sites that has reached
commercial operation and is
online since February 2016 with
160 MW (CSP) and 3 hours of
energy storage capability. Noor
Ouarzasate 2 with 200 MW (CSP)
and Noor -Ouarzazate III (CSP)
• Noor Midelt 2: July 2019, MASEN
150 MW were grid connected in
2018.
• Noor phase 4 - PV Project: This
phase, which became operational
in Q1 2018, consisted of three
sections: Noor Ouarzazate
IV, Noor Laayoune and Noor
Boujdour having capacities
of 72 MW, 85 MW and 20 MW,
respectively. The project has
been awarded with under a 20-
year BOOT.
• Noor Midelt 1: The project will
have a total installed capacity
of 800 MW. It is the world’s
first advanced hybrid-station
of CSP and PV technologies.
On completion, it will provide
dispatchable solar energy during
the day and until five hours after
sunset. The project was awarded
in Q2 2019 with a record-low tariff
at peak hours of $0.07 per kWh.
The 200 MW Noor Midelt Phase
1 plant is located 20 kilometers
north of the town of Midelt, with
construction expected to start
towards the end of 2019 and
connection to the grid planned
for 2022.
launched prequalification for a
hybrid power plant. using PV and
thermodynamic solar energy
(SPC), combined with various
thermal or battery storage
technologies for 190 MW during
peak hours (evening) and 230
MW during the day. MASEN has
extended the deadline for the
entries by developers to October
2019. Noor Midelt project is part-
financed by the World Bank ($125
million).
DECENTRALIZED SOLAR sufficient storage capacity for up entails the installation of 440,000
to 72 hours. The solar systems square meters of thermal solar
ensure uninterrupted supply of sensors in 2012 and 1.7 million
Morocco Solar Home Systems power and will provide, along with square meters in 2020. In terms of
(SHS) was introduced in 2018 other electrification initiatives, 99% thermal energy produced annually,
providing 19,438 solar home of rural Morocco with access to these figures will correspond to
systems in over 1,000 rural energy. 1190 GWh by 2020. The program
villages. Each of the installed will reduce carbon emissions by
systems consist of two solar The country has also adopted a 920,000 tons per year and create
panels having a total capacity of development program for solar 920 permanent jobs.
290 MW and two batteries with water heaters (PROMASOL): it
MOROCCO’S ISSUE OF GRID CONNECTION
A study has been commissioned in 2018 by EBRD to assess whether or not the medium voltage grid was able to
absorb new renewable energy projects. After the implementation of Law 58-15, net metering for solar and wind
power plants was introduced. It has increased the hydropower threshold from 12 MW to 30 MW and has allowed
private investors to sell the excess electricity production to the national network of high voltage (HV), very high
voltage (VHV) and low voltage (LV), but not more than 20% of their annual production. In parallel, other laws and new
institutions were created to be involved in the national energy strategy. Law 48-15 established the national regulation
entity named the “Autorité Nationale de Régulation de l’Électricité (ANRE)”, responsible for determining tariffs for
using medium voltage grid; however, it is not fully operational yet.
Outlook:
The deployment of the renewable energy plans (solar and wind) in Morocco rely mainly on large-scale projects.
The IEA considers that “this development of solar energy has been facilitated through the creation of MASEN as a
dedicated agency with strong support from the government and ability to mobilize grants and concessional financing
through public-private partnerships and to manage siting, permitting and tendering processes in a well-structured
way as on shop stop”.
Morocco is on the way to reach its ambitious goal, but challenges remain:

1. At $30 billion, the amount of investment required till 2030 is important;

2. Clear rules and net metering to facilitate C&I and allow grid access to private projects need to be completed;

OTHER PROJECTS
Over the next few years, Morocco is also planning projects outside of MASEN:
• ONE’s Solar Projects: ONE has also launched its own separate project program calling for the development of 500
MW of PV capacity by 2020. The project will be completed over three phases: Tafilalt, Atlas and Argana. All projects
are required to be completed within a five-year period after which operation will be transferred to MASEN.
3. Present power system is more flexible as other thanks to pumped hydro, CSP with integrated storage and
interconnexion with Europe, but ONE expects issues of integration on the grids once the share of wind generation
will have grown further.
Morocco is also looking at sizeable potential for greater uptake of renewable heat or electricity in industry or
renewables for export as electricity as well as hydrogen-rich chemical and fuels.

• Noor Atlas: In January 2019, ONE started the pre-qualification process for selection of EPC contractors for the 200
MW scheme to deploy seven PV plants in the south and east of the country. The tender is divided into two lots: one
lot for the construction of five plants – in Ain Beni Mathar, Bouanane, Boudenib, Boulemane (Enjil) and Outat El Haj
– all in eastern Morocco; and a second lot for facilities in Tata and Tan-Tan, in the south. German development bank
KfW is backing the project.

SOLAR OUTLOOK REPORT 2020 44 Middle East Solar Industry Association 45


G. OMAN
Current Situation:
The demand for electricity is
expected to increase from 7.7 GW
in 2019 to 16 GW in 2030. Oman is
mainly reliant upon hydrocarbons
for power generation.
The country has a significant
potential for renewable energy
with one of the world’s highest
solar energy densities. The
National Energy Strategy for 2040
foresees 10% of the total energy
UTILITY SIZE PROJECTS
• The 500 MW Ibri II Solar
Independent Solar Project,
around $400 million, was
awarded in early-2019 and is
expected to be commercially
operational in June 2021.
• Petroleum Development Oman
(PDO) signed a 23-year PPA
agreement for the 105 MW
Amin Solar PV project in early
2019. Commercial operation is
scheduled for May 2020.
• In the second phase of its solar
program, Oman Power and
Water Procurement Company
OFF GRID AND MINI-GRID
The Rural Areas Electricity Company (RAECO) is looking to add 90 MW of renewable energy capacity by 2020. In
2018, RAECO announced an initiative to hybridize the existing 11 small-scale diesel power plants at off grid sites,
transforming the plants into a combination of solar PV and diesel power hybrids and storage; 48 MW of solar PV
capacity, 70 MW of diesel generation capacity and 28 MW of battery energy storage systems. The projects shall be
developed and operated by the private sector under a BOOT basis under a 15-year PPA.
SOLAR OUTLOOK REPORT 2020 46
mix to be supplied by renewable
energy sources by 2025. PV and
wind projects are the main drivers
of renewable energy in the country.
These objectives are supported
by Oman 2020 Vision and Seven-
year Development Plan calling
for economic diversification
and reduced dependency on oil
revenues.
The share of renewable energy
generation objectives have been
(OPWP) launched in July the
prequalification phase for two
IPPs with a combined output of
more than 1GW. The Manah Solar
I IPP solar facility and the Manah
Solar II IPP will each have capacity
between 500 and 600MW. The
qualifications of 9 consortiums
have been announced on the
17th of December 2019. OPWP
is currently working to finalize
the request for proposals (RFP).
Contracts are expected to be
awarded in Q3 2020 with the
commercial operation planned in
Q4 2022.
• Several distributed generation
power projects from 10 MW to 40
MW in Sohar Port are planned to
reviewed to higher targets. The
sultanate has forecast an increase
in peak power demand of 53%,
reaching 9.96 GW by 2023. Of this
total, 11% of electricity generated
will come from renewable energy
sources. By 2030, renewable
energy should account for over
30% of the energy mix.
replace natural gas to power local
businesses.
• OPWP is planning to install
a CSP plant with a capacity
of up to 600 MW plus battery
storage systems. The project
is anticipated to proceed only if
Oman’s plan to deploy a Clean
Coal Independent Project is not
pursued.
SOLAR ROOFTOP
In May 2017, Oman Authority for Electricity regulation launched Sahim I, allowing large households and businesses
to install small grid connected PV systems at their own costs and to sell power back to the grid at prevailing bulk
electricity tariff.
In mid 2019, Oman was consulting for a second phase, Sahim II. This renewed scheme aims the deployment of
a wider scale of small grid connected PV systems for around 10% to 30% of residential premises. Unlike Sahim
I, the cost of procuring, installing and operating PV roof systems will not be met by the consumer but by private
developers, selected on a competitive base. Private sector solar developers will recover their costs through contracts
with licensed suppliers. Participating customers will make contributions to Sahim II based on expected savings on
their electricity bills. The pilot batch of Sahim will target 3000-5000 houses in Muscat to reach 100,000 houses by
2023.
Yellow Door Energy
Outlook:
Oman continues to further develop its renewable energy deployment and OPWP plans to procure 2.6 GW of renewable
energy projects. However, for the solar sector to meet its full potential, further regulatory policies, fiscal incentives
and public financing is needed.
Wadi Al Aash - Jordan
Middle East Solar Industry Association 47

H. PAKISTAN
Current Situation:
While total power generation
capacity of Pakistan has reached
25,374 MW, population growth
and industrial and economic
development have resulted in a
growing gap between demand and
supply of electricity. Shortages
are numerous and 51 million
people still do not have access
to electricity according to latest
figures available (2017).
However, Pakistan is also aiming
to reduce dependency on costly
imported fossil fuels, representing
today 40% of its electricity
generation. Moreover, the country
is seeking to increase climate
change mitigations and to meet
SDG goals engagements.
Pakistan, located in the sun belt,
has an enormous solar potential
existing in particular in provinces
such as Sindh, Baluchistan and
some southern parts of Punjab.
These areas receive 2 MWh/m2
solar irradiation and 3,000 hours of
sunshine per year.
SINDH SOLAR ENERGY PROGRAM (SSEP): A LOCAL PROVINCES LEVEL INITIATIVE
The government of Sindh in Pakistan has launched in 2018 a framework for a major solar initiative. The World Bank
committed $100 million of funding in 2019. The plan aims to support solar deployment in the province across utility-
scale, distributed generation and residential segments.
This includes up to 400 MW of solar park capacity (50-200 MW per park) starting with 50 MW, which will herald the
first tariff-based competitive auctions in Pakistan – originally announced in late-2017. The solar park concept aims
to help to reduce the risk profile for private sector developers by ensuring that land is secured, permits obtained and
power offtake is pre-arranged.
A pilot of a 50 MW site near Manjhand, Jamshoro District totaling $40 million, was launched. The project will be
operational by 2020 and private sector developers are encouraged through risk reduction, secured land permits and
power offtake.
The program also aims to integrate 20 MW of solar power through PV rooftop projects such as in Karachi. Solar is
targeted to be placed on public sector buildings as well as home systems in the country. It is expected to have tariffs
from approximately $0.06 to 0.10/kWh for distributed solar projects that are lower than the retail tariff charged by
utilities.

ALTERNATE ENERGY DEVELOPMENT BOARD (AEDB)

UNSOLICITED PROJECTS
To support the development of alternative energy, AEDB was established in May 2010. The organization has a
mandate to explore and implement renewable commercial projects for the public and private sectors. In addition to For unsolicited projects, asset
AEDB, Pakistan Council of Renewable Energy Technologies (PCRET) has also been acquiring technical expertise for owners can opt for either “cost-
a wide the promotion of solar and wind technologies. plus” or “upfront tariffs”. In each
instance, NEPRA determines “the
However, the share of renewable energy is still limited to 4% installed capacity of renewable power. The last two years technical and financial parameters
have seen the emergence of central government level Quaid-e-Azam Solar PV Park, with a designed capacity to for capital and operating
generate 1,000 MW. Yet this project is currently producing only 400 MW. Initiatives are also launched by local states expenditures and applies a rate of
and according to AEDB, up to 28 projects of 956.8 MW solar capacity are presently under development. return on equity”. For example:
• In January 2019, the Javed
Solar Park (49.5 MW) filed an
application for 25-years of tariffs:
NEW IMPULSE $0.0855/kWh for the first 11 years,
$0.0565 for the next two years
In February 2019, the Cabinet Committee on Energy (CCoE), chaired by the Finance Minister, approved proposals and $0.02969 for the remainder
from the Ministry of Energy (for all future renewable energy projects to be treated under the Renewable Energy Policy
2019.
of the contract. The levelized
tariff would be $0.07145/kWh,
according to NEPRA.
• NEPRA has received four
applications relating to 200 MW
of solar PV projects along the
Quetta-Chaman Highway in
Balochistan.
• In June, a project was submitted
to NEPRA to build four 50 MW
projects at Kuchlak, each with
just under 150,000 solar modules
of 335 Wp rating and installed on
single-axis trackers. Each project,
to be completed by June 2020, is
set to cost $36 million, financed
by 80% debt and 20% equity.
• NEPRA received an application
for a 50 MW generation license
from a private company in
August 2019. According to the
documentation submitted, the
company intends to install a PV
plant in Saleh Pat in the district
of Sukkur, in the Sindh region.
Should the plant be granted a
license, it will start commercial
operation by 2021 and the
electricity generated will be sold
to the Central Power Purchasing
Agency (Guarantee) Limited.

CCoE decided to permit renewable energy projects that have letter of support issued by AEDB to proceed towards
achieving their required milestones in accordance to Renewable Energy Policy 2006. DECENTRALIZED ENERGY, ROOFTOP AND OTHER SOLUTIONS

In addition, the National Transmission and Despatch Company (NTDC) in early 2019 has submitted to the National
There has been a strong surge in domestic installation of rooftop photovoltaic panels in larger cities. For projects
Electric Power Regulatory Authority (NEPRA) an indicative generation capacity plan 2018-40 recommending policies
under 1 MW, net metering regulations came into effect in September 2015. The government is targeting at least 1
and regulations across the value chain of the electricity sector to reshape the generation mix of Pakistan.
million customers and adding approximately 3,000 MW of solar power through net metering.
Moreover, based on a draft policy report by the Renewable Energy Policy in 2019:
Cost of electricity being high (0.14US cent/kWh), industries will be more interested in rooftop solar solutions. Hence,
• NEPRA has switched from a FIT model to auction-based bidding in 2019 decentralized solar shows good potential. With important issues of access to energy still existing, solar should be in
the rise for affordable off grid or mini grid solutions.
• The government has announced in Q3 of 2019 a target of 60% of renewable energy in its energy mix by 2030, out of
which 30% from hydropower.

So far, AEDB launched, in November 2019 a tendering process under IFC funding of 11 wind IPP projects totaling 560
MW. Solar projects are expected to follow. ENERGY STORAGE

Energy storage is being deployed for small scale residential and commercial applications. The new REN Policy draft
consider this as a “new technology” to promote if it allows lower LCOEs.

SOLAR OUTLOOK REPORT 2020 48 Middle East Solar Industry Association 49

 SOCIAL AND ENVIRONMENTAL IMPACT ASSESSMENT
I. SAUDI ARABIA
The Environmental and Social Management Framework’ (ESMF) released in 2018 aims to identify the social and
environmental impact of the projects. The framework is in line with the World Bank safeguard requirements and the
national and provincial regulatory bodies. It details mitigating methodologies to address social and environmental
impacts. Current Situation:
Saudi Arabia’s energy demand
has been rising with consumption
increasing by 60% in the last 10
Outlook: years. The demand for electricity
in 2019 is about 62.7 GW and is
Previous renewable energy policy in Pakistan provided multiple incentives to the private sector to develop renewable
forecast to increase by up to 120
energy projects. However, the absence of an action plan complementing the policy framework undermined the effort.
GW in 2030, according to Frost and
Availability of finance will be a key factor for local developers, but development of the grid must also follow. Sullivan.
Based on vision 2030, the Kingdom
With the implementation of the Indicative Generation Capacity Expansion Plan (IGCEP), the country sees a way
forward with a better coordinated strategy for the country’s power sector. AEDB provides a one window facility to of Saudi Arabia is aiming to reduce
its dependency on oil revenues,
the investors in setting up ARE -IPP projects in Pakistan under this policy. Overall, the future of the energy sector in
Pakistan relies on government-created initiatives to achieve a demand and supply balance in the energy sector. diversifying its energy mix and
PROJECTS
Round 1
The initial round of the NREP
included the launch in 2017 –
2018 of the two first tenders of
REPDO:
• PV project of 300 MW
at Sakaka, awarded in • Category A for smaller projects - require consortium members to part-
2018
• Wind farm of 400 MW
at Dumat al Jan • Medina (50MW)
dal, awarded in 2019
Round 3
Six projects (Table 4) are expected to be tendered early 2020.
Table 4: Saudi Arabia Round 3 Projects
Project
Yanbu wind independent power project (IPP)
Al-Rass solar PV IPP
SAAD solar PV IPP
Wadi ad-Dawasir solar PV IPP
FCCL Project - Pakistan
Reon Energy Limited Layla solar PV IPP
DNVGL Mahad al-Dahab solar PV IPP
SOLAR OUTLOOK REPORT 2020 50
developing its significant potential investments in renewable energy
of renewable energy. A dedicated up to $50 billion until 2023.
structure within the Ministry of
Energy, the Renewable Energy Measure to foster the development
Project Development Office of solar industry include:
(REPDO) was established.
• Renewed legal and regulatory
In 2018, the ambitions of Saudi frameworks within the NREP.
Arabia’s National Renewable
Energy Program (NREP) were • The Mutjadedah Program, to
substantially increased with a support the development of the
5-year target of 27.3GW and a 12 private renewable energy sector
focusing on renewable energy
years target of 58.7 GW, including
40 GW of PV and 2.7 GW of CSP. component manufacturing, IPPs
and distributed solar electrical
In total, the government is aiming
generation projects.
Round 2
Carrying a minimum requirement of 17% local content as calculated by
the mechanisms defined by the Local Content & Government Procure-
ment Authority (LCGPA), six projects for a total of solar PV capacity of
1.47 GW, divided into two categories are under tendering:
ner with at least one local man aging member
• Rafha (20MW)
• Category B for larger projects - allowing a maximum of four and a
min imum of three winning bidders
• 600 MW Al Faisaliah (complementary of larger project of PIF to
provide a total of 2.6 GW to Mecca)
• 300 MW Jeddah
• 300 MW Rabigh
• 200 MW Al Jawf
Capacity (MW) Location
850 80 km from Yanbu city
300 30 km from Al-Rass city
300 85 km from Riyadh city
70 10 km from Wadi ad-Dawasir
40 5 km from Layla city
20 15 km from Mahad al-Dahab
Middle East Solar Industry Association 51
 C&I AND ENERGY STORAGE IN SAUDI

With the engagement of electricity price reform, interest for solar C&I is growing. Authorities, in particular ECRA, are
currently working on devising a clear regulatory framework for such projects. It is anticipated to be launched in mid-
2020. The Mutajadedah program, designed by the SIDF could be the main driver to push forward more projects like
the off-grid system at Nadec (30 MW). With this program, the fund offers financing for rooftop solar captive systems
for 12 years, with a three-year grace period and attractive interest rates.

Even though storage is not explicitly mentioned in the energy mix or among REPDO-targeted technologies, storage

Your Reliable Partner for Solar EPC and Energy Efficiency solutions are not out of the picture as a 2.4 GW capacity of CSP is expected to be released in the near future.

MAJOR CHANGES IN KSA:

• Focus on local developers, for which Category A projects were dedicated. An addendum to the RFP was introduced
to relax some regulations for the local PV module manufacturers.

• The Local Content and Government Procurement Authority was established to oversee and audit local content
compliance across all government procurement activities.

• Higher local content requirements were mandated for Round 2 solar projects from 30% in Round 1, to 40%.

• Launch of a Renewable Energy Financing package by SIDF to support the growth of utility and distributed generation
sectors.

Outlook:
The National Industrial Strategy strongly emphasized on the need to cooperate with the private sector that could
lead into significant developments within the country. A stronger dialogue between the public and private sector is
anticipated to speed up the expansion of the solar market. Ultimately, with the development of framework, regulation
and business models, the C&I sector will offer significant opportunities for increased distribution generation projects.

www.arabianqudra.com Sakaka - KSA

ACWA Power

Middle East Solar Industry Association 53

J. TUNISIA

Current Situation:
The national consumption of However, few projects
electricity in Tunisia has slightly awarded were completed.

THE 2030 increased between 2017 and 2018,

from almost 15.6 GWh to 15.8
GWh. At the end of 2018, renewable
This demonstrates
the government’s internal
evaluation of bids need to be
that

energy represented 5.7% of improved in order to select

RENEWABLE the national energy production
capacity (240 MW Wind, 10 MW
Solar, 60 MW Hydro).
ENERGY The new regulatory framework that
was introduced in 2015/2016 by
ACTION PLAN the Ministry of Industry and Small
and Medium Enterprises is leading
the country to a major transition.
AIMS TO Moreover, The 2030 Renewable
Energy Action Plan aims to have
more realistic bids (the
government award process
was focused on the lowest kWh
prices offered by bidders as a
first selection criterion, rather
than on technical and financial
qualifications of each bidder.
i.e. how they are financed,
experience of the developer, etc.
as a second selection criteria).

HAVE 30%
30% of the total energy production
come from renewables
This includes installations of 1,000
OF THE TOTAL MW total capacity during the first
period 2017-2020 and an additional
1,250 MW during the period 2021-
A third tender for the
development of six 10 MW and
ten 1 MW projects was kicked
off in July, 2019 with a bidding
deadline on the 26th November,
2019.

ENERGY
2030. › For concession regime (medium
to large scale projects: < 10 MW
The country is following three for PV solar and < 30 MW for
different regimes for project
PRODUCTION development which are as follows:
wind), tender process applies.
The launch of a 500 MW PV
project resulted, in December
• Auto consumption regime:
COME FROM
2019, in the allocation to three
For producer’s sole consumption
consortiums respectively of
with possible grid connection.
300 MW, 100 MW and 100 MW.
Projects authorized based on
The lowest bid came at $0.025
RENEWABLES simplified procedures are granted
after undertaking complete
per kWh.
studies of projects. Many such • Exportation regime:
small-scale projects have been Devised for electricity production
approved (total of 16 MW). for exportation purposes are
entirely and exclusively with no
• Local consumption regime:
capacity threshold or tender
Electricity production sold
process and only royalties and
exclusively to STEG under a PPA,
fees to government, this regime
with a tariff fixed depending on
has so far not been implemented.
size and permitting process:
Table 5 shows a summary of the
› For authorisation regime (small
different rounds and tenders for
scale projects: >10 MW for solar
the local consumption regime.
PV and > 30 MW for wind) with
simplified tender process. Two
first rounds totalled 134 MW
PV were mostly dominated
by international developers
and are currently under
construction and development.

Middle East Solar Industry Association 55

Table 5: Local Consumption Regime in Tunisia

K. UNITED ARAB EMIRATES

LOCAL CONSUMPTION REGIME

Current Situation:
AUTHORIZATION REGIME CONCESSION REGIME
UAE has been and is still a front runner in the energy transition in the GCC with the highest portfolio of renewables
in the region. The UAE Vision 2021, UAE Green Growth Strategy, UAE Future Strategy and the UAE Centennial Plan
SOLAR PV WIND SOLAR PV WIND (2071) as well as the UAE Climate Plan and UAE Energy Plan 2050 fix high targets for renewables. To raise the share
of clean energy to 50% by 2050, 44 % would be supplied by renewables and 6% from nuclear power.
Round 1 Round 1 & 2 Combined 1st 1st Call for Tender
(Awarded) (Awarded) 500 MW (2 x 50MW + (ongoing)
6 x 10MW +4 x 1MW 4x30MW 2 x 100MW + 1 300MW (1x200 MW + PROJECTS
x 200MW) 1x100 MW)

Dubai
Round 2 Call for Tender 2nd Call for Tender
(Awarded) (ongoing) (ongoing) - Mohammad Bin Rashid Al Maktoum Solar Park, the largest single site solar park in the world will have a capacity
6 x 10MW + 10 x 1MW 200 MW of 5GW by 2030. The fifth phase totaling 900 MW, was allocated in November 2019, with a world record price of
(2 x 100 MW) $0.01693 per kWh.

• The current total production capacity of the solar park reaches 713 MW. The third to fifth stages of the project are
Round 2 Call for Tender 2nd Call for Tender still in process to be completed in the next years.
(Awarded) (ongoing) (ongoing)
• The expected completion of the project is in 2030.
6 x 10MW + 10 x 1MW 200 MW
(2 x 100 MW) Table 6: Different phases of 5 GW Mohamad bin Rashid solar Park
Phase Capacity Technology Status
Phase 1 13 MW PV Operational; 2013
Phase 2 200 MW PV Operational
C&I SECTOR
Phase 3 - Stage 1 200 MW Operational; 2018
Phase 3 - Stage 2 300 MW PV
The C&I segment in Tunisia is a very promising sector with the rise of initiatives within the self-consumption regime. To be completed in 2020
However, the market is struggling with subsidized fuel prices. Incentives i.e. tax breaks, need to be given to the Phase 3 – Stage 3 300 MW
industry to invest in C&I. PV (250MW)
Phase 4 950 MW To be completed by 2030
CSP ( 700 MW)
Phase 5 900 MW PV To be commissioned starting Q2 2021

CHALLENGES - Floating PV DEWA has issued an RFP appointing consultants to study, develop and construct floating solar PV
plants in the Arabian Gulf. The utility is currently studying the installation of a floating solar PV system on the
municipality’s deep tunnel rainwater drainage lakes – a project which is 50% complete. The floating solar station is
Finance: international banks and finance institutions have so far played a key role in unlocking capital in the market
expected to be placed on artificial lakes near Al Maktoum International Airport “so that the lakes receive rainwater
while access to local finance was limited.
and surface water from neighboring areas to be stored and then discharged to the deep tunnel” said Dawoud Al
Grid: important investments had to be engaged to upgrade grid connections as well as distribution systems in order Hajiri, director general of Dubai Municipality.
to allow integration of new renewable energy capacities.

Abu Dhabi park, Noor in Sweihan entered companies submitted their

Outlook: Abu Dhabi was home to the
region’s first commercial scale
With an annual 2-5% increase of the demand for renewable power for seen in the coming years, Tunisia ‘s government CSP plant, which came online in
expects to attract $2 billion of foreign investment for wind and solar power projects over the next three years. The 2013. Now the emirate is engaged
Tunisian Ministry of Industry and Small and Medium Enterprises declared that the funding would be used to support in a new cycle of tenders to grow
an additional production capacity of 1,900 MW by 2022. The overall general context of the country should help raise its solar energy capacity:
Tunisia’s credit rating, reduce interest rates and financing costs and improve investor confidence.
• The so far world’s biggest solar
commercial operation in mid-
2019 with a capacity of 1.78
GW.
• In early-2019, Abu Dhabi’s
Emirates Water & Electricity
Company called for an EOI to
develop a 2 GW solar project
in Al Dafrah. The 24 shortlisted
local and international
proposals in November 2019.
The project is expected to be
completed in Q1 2022.
• A new tender of similar size is
expected for early-2020 and
Abu Dhabi could aim up to 6
GW of additional capacity by
2026.

SOLAR OUTLOOK REPORT 2020 56 Middle East Solar Industry Association 57

 Northern Emirates
Up to 300 MW of solar are
planned in the Northern Emirates.
In early-2018, Ras Al Khaimah
Municipality announced its new
renewable energy and energy
efficiency program, including a
target of 25-30% clean energy
capacity by 2040. In January 2019,
the Federal Electricity and Water
Authority (FEWA) and the emirate
of Umm Al-Quwain signed an
agreement for the development
of a 200 MW solar park. Bee’ah in
the emirate of Sharjah is planning
for solar PV over its landfill,
and Sharjah Investment and
Development Authority (Shurooq)
and Diamond Developers
announced in March 2019 the
construction of a sustainable city
in Sharjah entirely powered by
solar PV energy.

NET METERING

Dubai’s net metering policy, in particular, Shams Dubai, achieved a 125 MW of installed capacity in residential,
commercial and industrial buildings in 2019. Similarly, Abu Dhabi’s planned net metering establishment in 2017
incentivized the C&I sector to install rooftop solar systems. However, specific regulation is still expected to be released.

Outlook:
UAE is faced with increased power coming online from renewables, nuclear and distributed solar energy which has
created several challenges for the management of the grid. Storage is starting to be included in solar tenders as a key
component for solving not only intermittency but managing daily and seasonal peaks.

Nour Energy 1 - UAE

ACWA Power

SOLAR OUTLOOK REPORT 2020 58

 L. IRAQ

Current Situation: Iraq’s potentials of solar energy • 50 MW and 30 MW Al-Muthanna

are important, with an average (South)
About 90% of the energy irradiation of 5.6 kWh/m2/day over
consumption of Iraq is based 3,000 hours of bright sunshine per • 2 x 50 MW Wasit (East)
on fuel, the rest is supplied by year. Combined generation of wind
natural gas. According to IEA, the and storage development may, • 225 MW Babel (Central)
electricity demand in Iraq, will however, be required in parallel to 7. Conclusion
increase with a 6% annual growth face intermittency and stability • 300 MW Karbala (Central)
rate by 2030 and is expected to issues.
double to around 17.5 GW average • 50 MW Diwaniyah (Central)
per year. The country’s approach has not
been very successful previously, The projects will be developed on The trend in the MENA region has so far been towards the development of large utility scale
With a high population growth including the feed-in-tariffs that BOO basis. They were tendered
and insufficient production was put in place in 2017. Iraq began in 2019 and are expected to be projects. Combination of decreasing LCOE and latest technology have been enabled through
and transmission capacities, taking a more decisive move in completed in 2020. As in other competitive bidding. Solar PV is expected to remain the preferred option with growing
the country is presently facing early 2019. UNDP supported countries, the country is placing
important issues of electricity the formulation of a solar policy a focus on creating a local PV contributions from CSP and storage projects.
shortages. This situation has aiming to deploy 5 GW of utility manufacturing sector.
fostered the use of diesel scale solar plants, as well as 5
generators to fill the gap. MW of residential PV and 10% of Rooftop installations had increased Energy storage is set to emerge as a vital component for further renewable energy
the country’s power demand with significantly in Iraq over the past
Iraq’s engagement in renewables two years. The country shows a developments in the region. Large scale hybrid PV combined with CSP and storage projects
renewable energy by 2028.
has been so far modest, with strong potential to implement off may increasingly prove beneficial, as has been the case with projects developed in Morocco.
priority given to switch from oil In May 2019, the Ministry of grid and distributed solar energy
to gas. However, as the country Electricity has launched a first generation. Such solutions are A similar approach is also observed in the UAE. Cost of storage remains an issue, but with
is now seeking to diversify its round of tender for a 755 MW providing a substitute for private
decreasing prices, adoption of battery storage is expected to grow for utilities, residential,
energy mix, the development of solar PV. The ministry invited diesel generators for additional
of renewable energy power companies to participate in the need for energy. Solar capacities commercial and industrial consumers.
generation technologies of 21 GW projects that will be located are installed in refugee camps with
of solar and 5 GW of wind by 2030 across the five provinces, Babel, a plan for having a combination
could improve the sustainability Wasit, Karbala, Al-Muthanna and of PV and energy storage to be Globally, the classic utility business models are undergoing profound changes. End use of
and reliability of electricity in the Diwaniyah. The capacities for each implemented in the Mam Rashan
country. The share of renewables project: camp. A 5 MW solar project has solar energy is increasing steadily. There is a significant demand for distributed generation
in the energy mix could possibly also been supported by the UNDP projects throughout the region, even more changes in regulatory policy to incentivize self-
reach up to 30% by 2030. to develop solar of households in
Najaf, in central-south Iraq. generation along with excess energy sale back to the utility grid are necessary for this market
to take off. In the long run, it is a new distribution of role between utilities and decentralized
production, between electricity producers and consumers that is coming up. Beyond self-
consumption, interaction will increase on the grid to balance the system with tools like net
metering systems, wheeling, etc. These trends will require more flexibility emphasizing the
Outlook:
role of grid and demand side management and buffer storage capacity. They foster the
The power shortage that is currently faced by the country is being partly addressed through diversification of the development of innovative technologies such as Power to X. The industry is embracing these
energy mix. An emphasis on gas exists, but renewable energy is increasingly on the map. The grid capacity will,
however, also have to be developed. Investments in transmission and distribution networks could be the central changes and is looking at a promising future for solar clean energy.
priority for the country in the medium- and long-term strategy. In this context, a continuous growth of distributed
solar energy and C&I by residential consumers and industry is expected.

SOLAR OUTLOOK REPORT 2020 60 Middle East Solar Industry Association 61

 8. Glossary of Terms
8. Contacts
AEDB : Alternate Energy Development Board IEA : International Energy Agency

BIPV : Building Integrated Photovoltaics IFC : International Finance Corporation

BNEF : Bloomberg New Energy Finance IGCEP : Indicative Generation Capacity

Expansion Plan

IRENA International Renewable

BOO : Build Own and Operate :
Energy Agency

BOOT : Build Own Operate and Transfer ISCC : Integrated Solar Combined-Cycle

Integrated Sustainable
CCoE : Cabinet Committee on Energy ISES :
Energy Strategy

Japan International
CdTe : Cadmium Telluride JICA :
Cooperation Agency

CIGS : Copper Indium Gallium Selenide (CIGS) JREEEF : Jordan Renewable Energy &
Energy Efficiency Fund

Algerian Electricity and Kuwait Authority for

CREG : KAPP :
Gas Regulation Commission Partnership Projects

CSP : Concentrated Solar Power Plan KAPSARC : King Abdullah Petroleum

Studies and Research Center

DEWA : Dubai Electricity and Water Authority KFSA : Kuwait Society for Science
Advancement

DFI : Development Finance Institution KfW : The German Development Bank

Kuwait Institute for Scientific

ECRA : Electricity Co-generation Regulatory Authority KISR :
Research

Kuwait National Petroleum

EETC : Egyptian Electricity Transmission Company KNPC :
Company

EOI : Expression of Interest KOC : Kuwait Oil Company

8. Contacts
ERA : Electricity Regulatory Authority Plan KPC : Kuwait Petroleum Corporation
Mustakbal, Jordan
Local Content & Government
DANIA MUSALLAM ESMF : Environmental and Social Management Framework LCGPA :
Procurement Authority
Research and Content Manager
MESIA
FEWA : Federal Electricity and Water Authority LCOE : Levelized Cost of Electricity
dania@mesia.com

Moroccan Agency for

GDP : Gross Domestic Product MASEN :
Sustainable Energy
MICHELINE THIENPONT
Events Director HTF : Heat Transfer Fluid MEW : Ministry of Electricity and Water
MESIA
micheline@mesia.com

Middle East Solar Industry Association 63

 Board Members

Morocco—Sustainable Ahmad S.Nada Alexandre Allegue Martine Mamlouk Gurmeet Kaur

MORSEEF : President Vice-President General Secretary
Energy Financing Facility Communications and
Marketing Director

MoU : Memorandum of Understanding

Benban, Egypt

MPW : Ministry of Public Works

NEEAP : National Energy Efficiency Action Plan

NEPRA : National Electric Power Regulatory Authority PPP : Public-Private Partnership

National Program for the Development Laura Capelin Khawla Albloushi Vikas Bansal
NPDRE : PV : Photovoltaics Legal Director Finance, Governance and International
of Renewable Energies
Government Relations Development Director
Director
NREA : New and Renewable Energy Authority RAECO : Rural Areas Electricity
Company

NREAP : National Renewable Energy Action Plan REFIT : Renewable Energy Feed in Tariff

NREL : National Renewable Energy Laboratory REN : Renewable Energy

MESIA Team

NREP : National Renewable Energy Program REPDO : Renewable Energy Project

Development Office

NTDC : National Transmission and Despatch Company RFP : Request For Proposals

NTEC : National Technology Enterprise Company SEWA : Sharjah Electricity

and Water Authority

OPWP : Oman Power and Water Procurement Company SHS : Morocco Solar
Home Systems

Sharjah Investment and

PAI : Kuwait’s Public Authority for Industry Shurooq : Micheline Thienpont Karine Metivier Dania Musallam
Development Authority Event Membership Research and
Director Manager Content Manager
PCRET : Pakistan Council of Renewable Energy Technologies SIDF : Saudi Industrial
Development Fund

PDO : Petroleum Development Oman SSEP : Sindh Solar Energy Program

PPA : Power Purchase Agreements

SOLAR OUTLOOK REPORT 2020 64 Middle East Solar Industry Association 65

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